ISLAMABAD, Pakistan: The Finance Minister Miftah Ismail has announced that one percent tax will be levied on the income or rent of the immoveable property with a value of Rs 25 million and above on the basis of fair market value formula.
Unveiling the budgetary proposals for the next Fiscal Year 2022-23 in the National Assembly on Friday, the finance minister however said that one personal residence of an individual will be exempted from this tax.
The minister said that the advance tax on the sale and purchase of properties for filer is being increased from 1 percent to 2 percent while the ratio for non-filers will be 5 percent.
For higher-income persons or companies, 2 percent tax has been proposed on annual income of Rs 300 million or above.
Miftah Ismail said that advanced tax on luxurious vehicles of 1600cc and above will be enhanced.
Furthermore, 2 percent advance tax will be imposed on electric vehicles. Similarly, the rate of tax for non-filers has been increased from 100 percent to 200 percent.
The finance minister proposed to raise the existing tax ratio from 39 percent to 42 percent on banking companies.
The advance withholding tax at the rate of 1 percent for filers and 2 percent for non-filers will be levied on sending money abroad through credit, debit, and prepaid cards. However, the tax will be adjustable against payable tax.