The government is set to abolish the federal excise duty (FED) on property transactions, following Prime Minister’s approval of a summary sent to the federal cabinet, according to Federal Board of Revenue (FBR) Chairman.

During an informal talk with journalists, the FBR chairman confirmed that the summary for ending FED on property purchases has been forwarded. Once the cabinet approves it, the decision will be formally implemented.

He further clarified that no purchase limit has been set for property transactions and that the abolition of FED will apply across all filer categories.

The 3% FED on property purchases for filers will be removed. The 5% FED for late filers will be abolished. The 7% FED imposed on non-filers will also be scrapped.

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Federal excise duty on property transfers expected to be repealed to support real estate sector

The move is expected to boost activity in the real estate sector and provide relief to buyers across the board.