Islamabad, February 21, 2025 – Pakistan’s tax collection from property transactions has surged to Rs 130 billion during the first seven months (July–January) of the fiscal year 2024-25, according to sources within the Federal Board of Revenue (FBR).
This represents a 24% increase compared to the Rs 105 billion collected in the same period of the previous fiscal year.
The rise in tax collection from property transactions is largely attributed to policy changes introduced by the FBR in the federal budget for 2024-25. The latest amendments have expanded the scope of taxation, ensuring that a larger number of transactions fall under the tax net.
According to the FBR, before the Finance Act, 2024, Section 100BA mandated higher withholding tax rates for individuals not listed on the Active Taxpayers’ List (ATL), as specified in the Tenth Schedule of the Income Tax Ordinance. However, the Finance Act, 2024, further broadened the scope by including individuals who, despite being on the ATL, had filed their tax returns after the due date. These changes have significantly contributed to the increased tax collection from property transactions.
With the enforcement of these stricter tax measures, there are now two categories of higher tax rates: one for individuals not appearing on the ATL at the time of transaction, and another for those listed in the ATL but who failed to file their returns within the stipulated timeframe.
FBR data reveals that tax collection from the sale of immovable property witnessed a 30% jump, reaching Rs 64 billion during the first seven months of FY25, compared to Rs 49 billion in the same period last year. Meanwhile, tax collection from the purchase of property also increased, amounting to Rs 66 billion, up from Rs 56 billion in the previous fiscal year.
READ MORE: FBR Revises Tax Rates for Property Transactions in 2025
Analysts suggest that the steady rise in tax collection from property transactions reflects improved compliance and stricter monitoring by tax authorities. Additionally, the government’s push for transparency in real estate dealings and enhanced enforcement of tax laws have contributed to higher revenues. As property remains a key sector for investment, the FBR is expected to continue tightening regulations to ensure that tax liabilities are duly met, further boosting the country’s revenue generation.