As revealed in the budget speech, the current FED of Rs. 2 per kilogram will rise by 50% to Rs. 3 per kilogram.
Finance Minister Muhammad Aurangzeb disclosed this update, highlighting that this adjustment is part of a broader effort to restructure FED across the country.
Additionally, the government has introduced a 5% FED on new residential and commercial plots. This duty applies to all allotments, including those without possession, also known as files, based on their face values.
Moreover, the Withholding Tax (WHT) on real estate transactions has seen adjustments. For filers, the WHT has been raised from 2% to 3%. Late filers will face a WHT of 4%. Non-filers will incur a WHT ranging from a minimum of 7.5% to a maximum of 20% for properties valued over Rs. 100 million.
These measures are part of the government’s strategy to boost revenue and streamline the tax structure within the real estate and construction sectors.