Govt set to scrap federal excise duty on property to boost real estate
The government is set to eliminate Federal Excise Duty (FED) on property transactions after Prime Minister Shehbaz Sharif approved a summary submitted to the federal cabinet, Federal Board of Revenue (FBR) Chairman revealed, according to Aaj News.
Speaking with reporters on Wednesday, the FBR chief confirmed the submission of the proposal to abolish property purchase taxes.
Transfer of plots, commercial property: FED expected to be withdrawn
The changes will take effect following formal cabinet endorsement.
The chairman emphasized the sweeping nature of the reform, noting the removal of 3% FED for regular filers, 5% FED for late filers and 7% FED for non-filers.
The tax relief will apply universally without any price restrictions on property transactions.
Business Recorder previously reported that the Excise Duty (ED) imposed through the Finance Act 2024 on plot and commercial property transfers would be withdrawn to support the real estate sector.
Reliable sources indicate this taxation measure has failed to deliver expected results during the first half of fiscal year 2024-25, generating negligible revenue.
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