Good news for non-filers willing to buy properties

ISLAMABAD: Non-filers can ‘buy’ properties worth Rs10 mln as the task force on the revival of the real estate and construction sector has finalized its recommendations.

The Ministry of Housing has submitted its proposals to the Federal Board of Revenue (FBR) as the Prime Minister aims to boost employment opportunities through the sector’s recovery.

According to the recommendations finalised by the ministry, citing sources, non-filers will be allowed to purchase property worth up to Rs10 million.

Reduction in tax rates under Section 236-C for property sales has been proposed to allow non-filers to buy the properties.

The ministry has recommended to reduced capital gains tax under Section 236-C from 3% to 1.5% and from 4% to 2 per cent.

Tax on property purchases under Section 236 likely to be cut from 3% to 0.5%.

Currently, the total tax burden on property transactions is between 11% and 14%.

Proposal to lower overall tax rates on property transactions to 4% – 4.5%. Furthermore, overseas Pakistanis will be ‘given’ easier access to property investments.

NADRA will provide an online registration facility for overseas buyers.

Filers will be allowed to declare property worth up to Rs50 million in their wealth statement, while non-filers can buy properties with Rs10 mln.

These measures aim to revitalize the real estate sector and attract both domestic and overseas investments.

Few days ago, the Punjab government decided to establish a Special Planning Authority to regulate urban and rural land use, aiming to curb the rise of illegal housing societies across the province.

Chief Minister Punjab Maryam Nawaz chaired a high-level meeting where proposals were reviewed to introduce uniform zoning and land-use regulations for commercial and residential areas.