ISLAMABAD: The Federal Board of Revenue (FBR) has decided to reduce the rate of tax on the sale of immovable property.
The tax body has exempted the real estate sector from paying Capital Gains Tax on sales of open plots after ten years.
At present, there is no tax if the property is held for more than three years. However, if the property is sold within three years a property tax will be imposed.
According to the report, there will be no tax imposed on a house or a flat if sold after four years, however, a five per cent tax will be imposed on the property worth Rs5million if sold before four years.
After June 30, 15 per cent tax will be imposed on property sold within 10 years of ownership.