The Federal Board of Revenue (FBR) has announced an increase in tax rates on cash withdrawals by non-filers and made significant changes to property transaction taxes, aiming to enhance tax compliance and boost revenue collection from individuals outside the active taxpayer list.
For non-filers, the tax on daily bank withdrawals exceeding Rs 50,000 has been increased from 0.6% to 0.8%. Banks are now authorized to deduct this advance adjustable tax at the revised rate.
In the real estate sector, amendments have been made to Sections 236C and 236K of the Income Tax Ordinance, adjusting advance tax rates for the purchase, sale, and transfer of immovable property:
- For Buyers:
- Up to Rs 50 million: Tax reduced from 3% to 1.5%
- Up to Rs 100 million: Tax reduced from 3.5% to 2%
- Above Rs 100 million: Tax reduced from 4% to 2.5%
- For Sellers/Transferors:
- Tax rate increased by 1.5%, aimed at better capital gains taxation.
The FBR stated these measures are designed to balance tax collection, provide relief to genuine property buyers, and ensure more effective taxation of capital gains from property sales.
