The government will likely introduce a new string of tax measures in the budget 2022-23 to raise 300 billion in the next fiscal year.
Federal Government has tasked the Federal Board of Revenue to finalize the areas and sectors for taxation to meet the upcoming fiscal year’s estimated revenue of 7.2 trillion. The ‘luxury tax’ was proposed after the meeting of Finance Minister Miftah Ismail with relevant bodies of FBR.
The proposal includes a luxury tax on big vehicles and big houses.
The real estate industry has been booming for the past few years, and tax amnesty schemes offered by the previous government to the construction sector have brought the real estate industry under the taxation radar in the FY23 budget.
Furthermore, tax on rental income is also under consideration. It is also said that DC rate revision and an increase in regulatory duty are also expected.
The news resources have told that the size of the houses that might come under taxation radar will be above 1000 or 1500 sq. yards. The size will be decided after the approval of the federal cabinet.
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