Lahore: The Federal Board of Revenue (FBR) has introduced updated withholding tax (WHT) regulations that will impact the sale and purchase of immovable property, motor vehicle transactions, and salary income. The changes, which took effect on July 1, 2024, include adjusted tax rates for different categories of taxpayers, including filers, late filers, and non-filers.
According to Zameen.Com, the FBR's recent notification mandates Inland Revenue chief commissioners to enforce these new rules. The adjustments specifically target the rates of withholding taxes for transactions involving immovable property and motor vehicles. For immovable property transactions, the tax rates now depend on the property's value and the taxpayer's filing status. Tax rates for filers range from 3% to 4%, late filers from 6% to 8%, and a flat rate of 10% applies to non-filers on the gross consideration of the property sold.
The purchase of immovable property also sees revised rates, with filers facing a tax range of 3% to 4% based on the fair market value, late filers from 6% to 8%, and non-filers subjected to significantly higher rates from 12% to 20%. These updates are intended to improve tax compliance and fairness in tax practices across different sectors by removing specific exemptions previously available to manufacturers, commercial importers, wholesalers, dealers, and distributors.