House-Buying In Pakistan Becomes More Difficult

Web Desk — Property deals will become more difficult for non-filer buyers and sellers, as the federal government has increased the cumulative tax on property sales in the country to a record high of 18.5 percent.

An increase in tax on the sale and purchase of houses, plots, or flats is effective from July 1. So, as a non-filer, you have to pay 10.5% tax instead of 7% on the purchase of property, while the seller of the property has to pay 6% instead of 4%.

These taxes include one percent stamp duty and one percent town tax on the property value.

According to the Property Dealers Association, the advance tax will be charged at 3.3% instead of 2.2% in the case of a filer buyer or seller.

Similarly, deals between filers will get an 8 percent tax to the federal and provincial governments, combined with one percent stamp duty and one percent town tax.