The government has reviewed the tax structure on property sales to maximize revenue and ensure compliance. According to recent reports, the cumulative property sales tax for non-filer buyers and sellers has reached an all-time hype of 18.5%.
The taxes on the sale and purchase of residential properties and plots have been increased as of 1 July. Property purchases by non-filers are now subject to a 10.5% tax, up from the previous rate of 7%. In contrast, non-filers who sell real estate will be subject to a 6% tax, up from the previous 4%.
As per the latest updates, those involved in real estate transactions must now pay a 3.3% advance tax, a significant increase from the previous rate of 2.2%. This applies to buyers and sellers, and it is expected to generate additional revenue of 8 percent for the federal and provincial governments. A one percent stamp duty and a one percent town tax, based on the property’s worth, will also be applicable. Imran Migrani, the leader of the Property Dealers Association, has confirmed these changes and urged filers to comply with the updated tax rates.