Late Return Filers Set to Face Additional Tax on Sale, Purchase of Property

The government is considering increasing withholding tax rate progressively on the sale and purchase of immovable property according to investment. The current rate on sale is 3 percent and 6 percent for ATL and non-ATL, whole on purchase the tax rate is 3 percent and 10.5 percent respectively. Under the proposal, the ATL list will have three sections comprising timely filers, later filers, and non-filers. The maximum tax rate will be applicable to non-filers, however, late filers will also face an additional tax rate on the sale and purchase of properties. The overall revenue impact of these measures would be Rs. 40 billion. For live updates on everything about the Federal Budget, visit this link.