Islamabad: The Federal Board of Revenue (FBR) has collected PKR 81 billion from the sale and purchase of immovable property during the fiscal year (FY) 2021-22.
FBR has collected PKR 81.20 billion during FY 2021-22. FBR officially released the number revealing that the income tax collection from the real estate sector surged by 33%. The tax collected in the preceding year (2020-21) to PKR 61.15 billion.
The FBR collected income withholding tax on the property transactions under Section 236-C and Section 236-K of the Income Tax Ordinance, 2001.
Under Section 236K, the FBR collects tax from the property buyers, whereas under Section 236, the FBR collects tax from the property sellers.
Compared to the preceding year, the tax collection under Section 236-C and Section 236-K increased by 37%(PKR 16.62 billion) and 32% (PKR 64.58 billion) during the tax year 2022.
The increase in tax collection is more likely the result of the previous government’s incentives given to the construction industry. The incentives include a decreased tax on immovable properties and FBR income source amnesty.
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