Property Transactions Generate PKR 81 Billion in Revenue FBR (Federal board of Revenue)

The real estate business in Pakistan contributes significantly to the government taxes. Through various means, adding super solid revenue contributions to the national tax recovery. Recently Federal Bureau of Revenue (FBR) stated that Property Transactions Generate PKR 81 Billion in Revenue FBR. It means the real estate businesses have been supporting the collapsing economy amazingly. Nexthome.pk analyzes the potential and its outcomes in coming years through real estate projects across the country.

Let’s learn how real estate transactions generate such an immense revenues:

Stamp Duty

Every time a property transaction occurs, a stamp duty fee is charged, which is a tax levied by the government. This fee is usually a percentage of the property’s value and is collected by the government as revenue. Online stamp paper fee is minimum Rs.300 that directly goes to government’s pocket. Besides this, tickets and further fees are also major sources of government tax collections.

Capital Gains Tax

If a property is sold at a higher price than its purchase price, and a capital gains tax is levied on it. This tax is collected by the government and adds to its revenue. the government collects stamp duty fees every time a property transaction occurs, which is usually a percentage of the property’s value. Similarly, the government levies capital gains tax on the difference between the purchase price and the sale price of a property. The amount of tax revenue generated through these taxes depends on the frequency and value of transactions such as property like home, apartment, farmhouse or steakhouse commercial property worth.

Property Tax

Property tax is levied annually on the property’s value, and the government collects this tax as revenue.

Withholding Tax

The government of Pakistan lso collects withholding tax on various real estate transactions, including rent, commission, and transfer of property. The tax is collect by the payer, and is deposit to government’s account.

Future & Present of Real Estate Investment in Pakistan?

Overall, the real estate business in Pakistan contributes a significant amount of revenue. To the government taxes through these taxes and fees. This revenue  used by the government for public welfare projects, including infrastructure development, healthcare, education, and more. It means that government has to encourage these property sectors to have consistency in tax collections. This ushers the present and future of the real estate business to a shining end.