Non-filers to be charged with 7% FED on property transfer

Pakistan, July 25, 2024: The Federal Board of Revenue (FBR) has made a new announcement to boost tax compliance. Non-filers will now bear a 7% Federal Excise Duty (FED) charge on property transfers. This significant move by FBR is to encourage citizens to file their tax returns.

Authorities’ excessive financial burden on non-filers is a strategic move to ensure the regularization of their tax statuses. This FED will increase the overall property transaction costs for non-filers.

The real estate sector has been a hotspot for tax evasion, creating an excessive burden on the formal economy. This move by FBR will ensure that all the non-filers outside the tax net face the consequences.

Also Read: FBR To Collect Taxes From Shopkeepers In 24 Cities

Though this initiative might slow down the property transaction process among non-filers, it will benefit the national economy in the long run. Moreover, transparency and compliance will help create a much more trustworthy market environment.

Filers, on the other hand, will benefit from low tax rates and more favorable terms. Being a filer will also make them credible to invest in the real estate market. The imposition of 7% FED will enhance tax compliance and encourage transparency in the real estate sector.

Overall, the 7% FED charges on non-filers is a good initiative by FBR to encourage non-filers to get into the tax net with a broader stance to stabilize the national economy. Stay connected with RBS for the latest updates on tax reforms and other important news.