Pakistan 2022-23 budget raises taxes across categories including new slabs on property investments

Pakistan 2022-23 budget raises taxes across categories including new slabs on property investments

Dubai: The Pakistan rupee slipped after the unveiling of the federal government’s 2022-23 budget, which has increased taxes across whole categories and also introduced a capital gains tax on real estate assets. The budget, presented by Finance Minister Miftah Ismail, hews close to many of the requirements mandated by the IMF before it decides to release $3 billion in additional funds, according to UAE-based Pakistan businessmen. “The capital gains on real estate is a first, and will likely slow down the flow of funds into the Pakistan property market initially,” said Sameer Lakhani, Managing Director at Global Capital Partners. “The budget sets the tax at 15 per cent if the asset is sold in the first year and reduced by 2.5 per cent for each subsequent year. “There are also tax increases on the banking sector, in keeping with the government’s need to increase tax collections. Now, we need to see how the IMF responds and how soon they will release the funds.” This week, the Pakistan rupee had dropped below 56 to the dirham, even as inflation rates went past 13 per cent. Fuel and gas prices were increased, thus rolling back the heavy subsidies that were there. For