Karachi, January 21, 2025 – The Federal Board of Revenue (FBR) has achieved a monumental milestone by collecting an impressive Rs 200 billion in taxes from immovable property transactions during the tax year 2024. This marks a substantial 30% increase compared to the Rs 153.75 billion collected in the previous tax year, according to official documentation.
A detailed analysis reveals that the FBR collected Rs 104 billion in withholding tax from property purchases during the tax year 2024. This figure represents a robust 24% surge from the Rs 83.95 billion recorded in the preceding fiscal year. Meanwhile, tax revenue generated from property sales exhibited an even sharper rise, escalating by 37% to reach Rs 95.65 billion, compared to Rs 69.80 billion in the previous year.
These impressive figures underscore the FBR’s intensified efforts to streamline tax collection from the burgeoning real estate sector in Pakistan. The significant uptick in revenue reflects enhanced compliance measures, strengthened enforcement protocols, and a growing recognition of the importance of tax contributions to the national economy.
The FBR collects withholding taxes on property transactions under two key provisions of the Income Tax Ordinance, 2001. Section 236K governs the collection of taxes on property purchases, while Section 236C pertains to taxes levied on property sales. These measures not only ensure compliance with tax regulations but also contribute to documenting and regulating the real estate market, a historically under-monitored sector in Pakistan.
The unprecedented growth in tax collection from property transactions highlights the sector’s potential as a crucial revenue stream for Pakistan’s economy. This achievement also aligns with the government’s broader goals of fostering a transparent and well-regulated financial ecosystem. By targeting real estate transactions, the FBR aims to minimize tax evasion, curb speculative trading, and encourage legitimate investment practices.
As Pakistan grapples with economic challenges, the Rs 200 billion collected from immovable property transactions serves as a testament to the efficacy of the FBR’s policies and its commitment to enhancing the country’s fiscal stability. This achievement underscores the importance of a vigilant tax collection mechanism in bolstering the nation’s financial resilience.