In compliance with an IMF mandate, the federal government revised the tax structure for property transactions in the 2024-2025 fiscal budget, significantly increasing the financial burden on property buyers. The revised tax rates are based on the taxpayer’s filing status and the property’s valuation.
For properties valued up to 5 crore rupees, the tax rates are 3% for regular filers, 6% for late filers, and 12% for non-filers. For properties exceeding 5 crore rupees, the rates increase to 3.5% for regular filers, 7% for late filers, and 12% for non-filers.
Properties valued over 10 crore rupees face higher tax rates—4% for regular filers, 8% for late filers, and a steep 20% for non-filers. Authorities also require an advance tax of 236,000 rupees on all such transactions.
The structure of registration fees varies based on property value. Properties valued up to 500,000 rupees incur a fee of 500 rupees, while those exceeding this value have a 1,000 rupee fee. Additional costs include a property transfer fee of 300 rupees, a PLRA fee of 1,700 rupees, and a document fee of 200 rupees. Authorities also require a bank challan of 100 rupees for documentation.
Other charges include a commission registration fee of 5,000 rupees and a 2% stamp duty for a general power of attorney for non-legal heirs. The registration fees for endowments are 1,000/500 rupees, and a declaration of sale incurs 3,000 rupees plus a 0.1% registration fee.
For agricultural transfers, the registration fee is 1,000/500 rupees, accompanied by a 2% stamp duty for urban and rural exchanges and 3% for properties in rural areas. Stamp duties of 1% apply within committee limits and 3% outside these limits, with district councils within municipal boundaries levying a 1% fee.
These tax rates and fees apply to property transactions across Pakistan, with certain additional taxes and fees specifically targeting properties in Punjab.
