Real estate agents are asserting that property transfers have come to a halt due to the implementation of new taxes

Following the implementation of section 7E, which imposes a tax on deemed rental income, over 95 percent of property registrations and transfers have come to a halt since July 1, 2023.

Representatives from the real estate sector informed the National Assembly Standing Committee on Finance about the negative consequences of this provision. The Federation of Realtors Pakistan (FORP) highlighted that registries have decreased significantly, leading to a surge in capital being transferred abroad by investors.

FORP urged for the withdrawal of section 7E or, alternatively, to apply it only to plots and exempt filers. The Finance Act of 2022 introduced this deemed income concept, and the Finance Act 2023 added restrictions on transferring authorities until tax liabilities under section 7E are fulfilled.

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