The federal Government is about to impose luxury tax on Large homes and farmhouses that are located in federal Capital. This Tax is expected to be ranging from PKR 100,000 to PKR 200,000 for houses and PKR 25 to PKR 80 per square feet for farmhouses.

This tax will be recovered by Excise and Taxation Department. Furthermore, it has been decided that homes owned by widows will be exempted from the proposed luxury tax. The final decision on this matter is not yet taken if approved by the federal government, the tax will be made part of the national budget FY2020-21.

Homes that are of size between 2 kanals to 4 kanals will have to pay the luxury tax worth of PKR 100,000 and any other home exceeding this size limit will have to pay the luxury tax worth of 200,000.

Farmhouse properties up to 4 kanals of size are not included in luxury tax while farmhouses between 5,000 sq ft and 7,000 sq ft in size the tax will be imposed at a rate of PKR 25 per square foot of covered area. For farmhouses covering an area between 7,001 and 10,000 sq ft, the tax will be imposed at a rate of PKR 40 per square foot. For a covered area larger than that, the tax will be imposed at a rate of PKR 50 per square foot.