Here are the new taxes imposed on builders, developers

LAHORE: The federal government has introduced a three per cent federal excise duty (FED) on the sale of properties, targeting builders and developers for every new project.

According to the Finance Bill 2024-25, passed by the National Assembly today, this 3 per cent FED will be applicable to all sales of commercial and residential properties, including apartments and houses.

The duty specifically targets builders and developers launching new projects.

The amended bill outlines the following FED rates:

– Filers will pay 3 per cent

– Late-filers will pay 5 per cent

– Non-filers will pay 7 per cent

In addition to the FED, the government has imposed a capital value tax (CVT) on property sales in Islamabad. The CVT will amount to Rs0.5 million for farmhouses and large houses under Section 7-E. Specifically, the CVT will be:

– Rs0.5 million for properties up to 2000 square yards

– Rs1 million for properties above 4000 square yards

Earlier today, the National Assembly approved the Federal Budget for the fiscal year 2024-25, with a total outlay of Rs18,870 billion. Minister for Finance and Revenue, Muhammad Aurangzeb, moved the motion for the Finance Bill 2024, which was passed by a majority vote.

This led to the adoption of the Finance Bill 2024 after a clause-by-clause reading and consideration of amendments. All amendments proposed by opposition members were rejected.