FBR imposes 15% charges in Islamabad Real Estate Sector

The Federal Board of Revenue (FBR) has placed hundreds of services into General Sales Tax (GST) in the Islamabad Capital Territory at the rate of 5 and 15 percent, reported in daily The News.

For construction services 15pc tax will be charged, excluding:

(i) construction projects (industrial and commercial) of the value (excluding actual and documented cost of land) not exceeding Rs50 million per annum,

(ii) cases where Sales Tax is otherwise paid as property developers or promoters,

(iii) government civil works, including cantonment boards,

(iv) construction of industrial zones, consular buildings and other organisations exempt from Income Tax,

(v) construction work under international tenders against foreign grants-in-aid,

(vi) residential construction projects where covered area does not exceed 10,000 square feet for houses and 20,000 square feet for apartments.

Services by property developers and promoters (including allied services), excluding actual purchase value, or documented cost of land, FBR will charge Rs100 per square yard for land development and Rs50 per square feet for building construction.

Services provided by persons engaged in contractual execution of work, excluding (i) annual total value of contractual works or supplies does not exceed Rs50 million, (ii) contract involving printing or supplies of books, 15pc tax will be charged.

Elegibility criteria for property related matters relaxed in revised budget 2025-26