In a move to bring builders and developers into the tax net, the government of Pakistan has reportedly put together a simplified fixed tax scheme for real estate. According to a leading local newspaper, the new regime will substantially benefit the builders and developers of low-cost housing societies – such as Naya Pakistan Housing Program.
The Federal Board of Revenue (FBR) is expected to officially announce the finalized scheme shortly.
As per the report, the concerned authority will develop a central plan of action for the recipients. Property developers will have to get themselves registered with the Federal Board of Revenue through its automated IRIS system in order to benefit from the new tax regime.
Let’s take a look at how exactly the new fixed tax scheme for builders and developers is likely to affect the real estate sector of Pakistan.