The Federal Board of Revenue (FBR) has submitted a summary to the federal cabinet recommending the complete abolition of the Federal Excise Duty (FED) on property purchases, following approval from Prime Minister Shehbaz Sharif.

FBR Chairman Rashid Mahmood Langrial confirmed in an informal briefing with the media that the proposal to eliminate FED on property transactions has been forwarded to the cabinet for approval. Once the cabinet gives the green light, the decision will be implemented immediately.

Langrial emphasized that the exemption will have no cap or upper limit on the property value and will apply equally to all taxpayer categories, including filers, late filers, and non-filers.

Currently, a 3 percent FED is imposed on filers purchasing property, while late filers pay 5 percent and non-filers are charged 7 percent. The proposed abolition will remove these levies entirely.

This initiative is part of the government’s broader strategy to boost the real estate sector and eliminate tax-related barriers for property buyers nationwide.

The FBR chairman noted that the implementation of the decision depends on cabinet approval, which is expected soon.