The federal government has announced its decision to abolish the federal excise duty imposed on the real estate sector.

This duty, which was introduced in July 2023, charged 3% on the first sale of any plot. After ten months, the government has opted to remove this duty.

Senior officials from the Federal Board of Revenue (FBR) have confirmed that this decision is being made in consultation with the International Monetary Fund (IMF).

Initially, the excise duty was set at 3% for tax filers and 5% for non-filers.

Sources showed that the government has finalized the decision to eliminate this duty entirely for both categories, and the FBR has submitted a summary regarding this matter.

The FBR spokesperson, Najeeb Ahmed Memon, stated that legislation to abolish the federal excise duty will be introduced soon.

The finance minister has already approved the summary, which is expected to be presented to the federal cabinet shortly.

In addition, the government is considering the removal of the 10% surcharge imposed on annual incomes exceeding Rs1 crore, effective from the new financial year.

Sources revealed that the government is exploring various options to reduce the tax burden on salaried individuals, although the implementation of these measures will depend on the approval of the IMF.

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