Govt Proposes 5% FED on Real Estate

The federal government has proposed to impose a 5 percent federal excise duty (FED) on new plots and residential and commercial properties. The proposal was announced by Finance Minister Muhammad Auragnzeb in his budget speech on Wednesday. The minister said that the increase has been proposed to stop speculation and bring stability to the real estate market. The government is also considering increasing the withholding tax rate progressively on the sale and purchase of immovable property according to investment.