What Budget 2023-24 Brings Good For Real Estate Sector?

The recent unveiling of the Budget 2023-24 Brings Good For Real Estate in Pakistan has brought about exciting advancements for the local construction and real estate sectors. Likewise, the budget relieves the overseas Pakistani investors. The budget presents several significant provisions aimed at delivering relief, support, and incentives to foster growth within these sectors.

Alleviating the Construction Sector

The government has taken substantial measures to offer relief to individuals engaged in constructing their own homes. During the period from 2023 to 2026, individuals who complete their construction projects. Within this timeframe will receive benefits in terms of tax liabilities. For instance, if an individual’s tax liability for the year amounts to 1 Lac. And they successfully complete construction on high-rise buildings or personal property within the specified timeframe. They will be eligible for a 10% relief or up to 10 lakh rupees, whichever is lower. It is important to note. However, that this facility is only available to tax filers and is contingent upon obtaining approval of the location map from the Lahore Development Authority (LDA). Furthermore, the completion of the house will be linked to the final tax return.

Support for Builders

The budget also acknowledges the significance of the real estate industry and the need to facilitate builders. The budget imposes a requirement to pay either 50 lakh rupees or 10% of the tax liability, whichever is less. The government recognizes the importance of high-rise buildings and aims to maximize the tax exemption for construction projects of this nature. As the demand for housing increases and agricultural land diminishes in Lahore, high-rise buildings and apartments have become attractive options. The previous budget already offered tax exemptions for apartments and high-rise buildings, with shorter minimum tenures compared to plots and commercial properties.

Relieving News for Overseas Investors

The budget brings promising news for overseas Pakistanis who have expressed eagerness to invest in their home country. Previously, a 2% advanced tax acted as a deterrent for many overseas investors considering significant investments. However, the new budget explicitly states that overseas Pakistanis will no longer be subjected to the 2% advance tax when purchasing or selling property in Pakistan.

This move aims to encourage increased investments from the overseas Pakistani community. Moreover, the budget raises the limit on the amount of money that overseas Pakistanis can send to Pakistan without undergoing scrutiny. The limit, which was previously set at $50,000, has now been increased to $100,000, providing greater flexibility for overseas Pakistanis to invest in their homeland.

These provisions announced in the 2023-24 budget reflect the government’s dedication to supporting the construction and real estate sectors and encouraging investments from both local and overseas sources. By offering tax relief and incentives, the government aims to stimulate growth, create employment opportunities, and boost the overall economy. It is anticipate that these measures will attract a higher number of individuals and businesses. To engage in construction projects and real estate ventures. Leading to increased development and prosperity within the property sector.

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