FBR to Raise Property Rates and Revise Taxes Starting July 2024
In a recent announcement, the Federal Board of Revenue (FBR) in Pakistan, along with the government, has decided to increase property rates and revise taxes starting July 2024.
This decision, approved by the World Bank under the “Pakistan Raises Revenues” loan scheme, aims to improve tax collection efforts across the country.
Higher Property Rates and Tax Changes
In 2024, the new property rates and revised taxes will kick in to boost tax collection efforts. The Federal Board of Revenue has instructed provinces to ensure property valuation rates are at least 85% of the FBR’s proposed rates.
This move aligns with Pakistan’s initiative, in collaboration with the World Bank, to increase tax collection on real estate nationwide.
The World Bank has provided instructions to tax authorities in Pakistan to raise tax collections across all four provinces. Pakistan aims to reach a target of 8.8% of the GDP by 2025, up from the previous 8.5%.
Alongside increasing property prices and tax rates, the FBR is exploring additional measures to meet the World Bank’s conditions.
The FBR is actively reaching out to provinces and exploring diverse methods to enhance tax collection.
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Conclusion
Additionally, following the World Bank’s requirements, the FBR is required to create a digital data exchange program encompassing all four provinces of Pakistan.
The deadline for the $400 million loan in the “Pakistan Raises Revenues” initiative has been pushed to June 2025, with a target of achieving 8.8% in tax collection.
It’s crucial to note that the Government of Pakistan and the FBR are obligated to accept the conditions set by the World Bank as outlined in the signed Memorandums of Understanding (MOUs).
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