Can a wealth tax on property help FBR?

The taxation system in Pakistan has been undergoing amendments in recent months. The latest changes cover many different facets of the country’s economy, including retail agriculture and real estate sectors.

According to a news outlet on October 1, the government is considering imposing a wealth tax on movable assets while making amendments in the real estate sector.

The Federal Board of Revenue (FBR) has recently been setting new standards to achieve its tax collection goals. They have recently exceeded the amount set to be collected this quarter by a whopping PKR 63 Billion.

The officials have confirmed, according to recent news, that the government is planning to materialize the Federal Board of Revenue’s ambitious goal for the tax year.

The goal is to collect a total of PKR 9.2 trillion. It will elevate the tax-to-GDP ratio to 15 percent. This percentage is equal to a total of PKR 13 trillion in the next two years.

Capital Gains Tax (CGT) on immovable property is also being considered by the government.

It will serve its part to increase the country’s GDP ratio and will boost the economy. The FBR is working on comprehensive documentation law to strengthen the economy.

Join Our Knowledge Hub: Sign Up for Diverse Insights Today!