Government Proposes Major Policy Shift to Boost Real Estate Sector

The government has proposed a significant policy change, allowing non-filers to purchase properties worth up to Rs 10 million. The Ministry of Housing has submitted these proposals to the Federal Board of Revenue (FBR) to stimulate real estate investment and job creation.

 

Reduced Property Taxes to Benefit Non-Filers

To facilitate property transactions, the Ministry has recommended reducing tax rates under Section 236-C:

• Capital Gains Tax: Reduced from 3% to 1.5% for filers and 4% to 2% for non-filers.
• Property Purchase Tax (Section 236): Expected to drop from 3% to 0.5%.
  These reductions will lower the overall property tax burden from 11%-14% to an estimated 4%-4.5%.

 

Ease for Overseas Pakistanis with Online Registration

To simplify real estate investments, NADRA will introduce an online registration system for overseas buyers. Filers can declare properties worth up to Rs50 million, while non-filers can acquire properties valued at up to Rs10 million. This move aims to encourage both domestic and foreign investment.

 

Punjab to Regulate Illegal Housing Societies

In a parallel development, the Punjab government plans to establish a Special Planning Authority to regulate land use and curb unauthorized housing projects. This authority will oversee zoning laws and urban planning to ensure sustainable development.

These proposed reforms are expected to revitalize the real estate sector, attract investors, and boost economic growth by creating employment opportunities in construction. The government aims to enhance ease of doing business while maintaining regulatory oversight to prevent illegal developments.