BRA Imposes New Taxes on Developers in Balochistan

The Balochistan Revenue Authority (BRA) has formally directed all property developers and project promoters operating within the province to ensure mandatory registration and timely submission of sales tax returns for each prescribed tax period in accordance with applicable law.

Through an official notification, the Authority clarified that services pertaining to land development as well as the construction of residential and commercial units fall squarely within the ambit of the Balochistan Sales Tax on Services Act, thereby attracting the relevant statutory tax rates.

Under the updated taxation structure, a levy of Rs. 100 per square yard has been imposed on services involving the conversion of acquired or leased land into residential or commercial plots. Furthermore, construction services relating to residential and commercial units are now subject to tax at the rate of Rs. 50 per square foot of covered area.

The BRA has emphasized that all developers and promoters must complete registration strictly in line with prescribed legal procedures and adhere to mandatory return filing obligations.

Failure to comply may trigger statutory penalties, financial liabilities, and potential legal proceedings under the governing provisions of the law.

Businesses engaged in land development and construction activities are strongly advised to review their compliance status and ensure adherence to the applicable tax regime to mitigate enforcement risks and avoid adverse legal consequences.