Islamabad, February 4, 2025 – A high-level task force established by Prime Minister Mohammad Shehbaz Sharif has put forward significant recommendations aimed at revitalizing the real estate sector by introducing an amnesty on property transactions.
The task force suggests that buyers of properties worth up to Rs 50 million should not be required to disclose the source of their income to tax authorities.
As part of its comprehensive recommendations, the task force has also proposed the abolition of Section 7E of the Income Tax Ordinance, 2001, which mandates the collection of tax on deemed property income. By eliminating this section, the task force aims to encourage investment in the real estate sector and reduce tax burdens on property owners.
Additionally, the task force has recommended the removal of the Capital Value Tax (CVT) in Islamabad, advocating for uniform taxation policies across the country through the National Tax Council. The implementation of standardized tax policies would ensure consistency and fairness in property taxation.
To further streamline the real estate market, the task force has suggested standardizing and rationalizing stamp tax rates across all provinces and the Islamabad Capital Territory (ICT). A uniform approach to stamp duties will help create a level playing field for property transactions nationwide.
Moreover, the task force has proposed a waiver of wealth reconciliation requirements for investments in the real estate and construction sectors, up to Rs 50 million. This move is expected to encourage more investments and contribute to the growth of the property market.
Among other key proposals, the task force has emphasized the need to revise official property valuations every three years to align with market rates. This periodic revision would ensure that property values remain realistic and reflective of current trends, reducing discrepancies between market and official valuations.
The task force has also suggested introducing exemptions on transaction taxes for specific categories, including low-cost housing projects, government-allocated plots, and first-time homebuyers. By offering these exemptions, the task force aims to promote affordable housing and facilitate homeownership for middle and lower-income groups.
With these sweeping recommendations, the task force seeks to create a more transparent, efficient, and investment-friendly real estate market in Pakistan, ultimately boosting economic growth and development.