Source taxes on land transfer cut

The interim government has taken initiative to encourage land registration based on actual value.

Finance Adviser Dr Salehuddin Ahmed proposed to reduce the source tax collection rate from capital gains on land transfer in the next fiscal year (FY) 2025-26 at different rates based on locations.

"To prevent accumulation of undisclosed fund in the hands of land sellers and to ensure property registration at actual sale value, the source tax collection rate from capital gains on land transfer has been reduced from existing 8.0 per cent, 6.0 per cent, and 4.0 per cent to 6.0 per cent, 4.0 per cent, and 3.0 per cent respectively depending on locality," said the Finance Adviser in the budget speech.

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