Islamabad, Pakistan – In an effort to boost revenue, the Pakistani government is tightening regulations on non-filers, with plans to increase the advance tax on the purchase of immovable properties.
According to a new agreement between the Federal Board of Revenue (FBR) and the International Monetary Fund (IMF), the withholding tax on property purchases by non-filers is set to rise significantly.
Following legislative approval, the FBR could potentially collect over Rs100 billion in the next fiscal year. The initiative aims to discourage tax non-compliance and enhance revenue from the real estate sector.
| Property Value | Tax Rate for Filers | Tax Rate for Non-Filers |
| Up to 50 million | 3 percent | 6-7 percent |
| Between 50-100 million | 4 percent | 12 percent |
| Over 100 million | 5 percent | 15 percent |
Pakistan is currently negotiating fresh loans from the IMF, which is urging the government to tap into previously untaxed segments to broaden the tax base. As part of these structural reforms, the government has also pledged to implement measures such as blocking the mobile SIM cards of non-filers.
At present, tax authorities impose a 3 percent levy on filers and a 10.5 percent tax on non-filers, generating Rs80 billion in revenue for this fiscal year. The IMF is now recommending that the government increase the advance tax rate for non-filers to further enhance revenue collection.
This move is expected to significantly impact the real estate sector and is part of a broader strategy to ensure greater compliance and boost the nation’s fiscal health.