FBR Announces Sales Tax Exemption on Property Related Services

Federal Board of Revenue has issued a notification for exemption of sales tax on services of property developers and promoters in Islamabad.

The FBR issued SRO 326(I)/2020 to amend Islamabad Capital Territory (Tax Services) Ordinance 2001, to reduce the sales tax on services at zero percent from five percent.

Prime Minister Imran Khan had announced an incentive package for the construction industry in order to increase employment opportunities in the country as government tries to mitigate the economic impact of the novel coronavirus outbreak.

The government implemented an amnesty scheme along with a string of relief measures to promote the construction sector which offers employment to a large number of labourers.

Property developers and promoters as well as allied services of low-cost housing schemes, will not pay any sales tax on services. The Naya Pakistan Housing Development Authority or government’s Ehsaas Programme will approve or finance these schemes.


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It is to be noted that no one will be able to claim input tax adjustment or refund in case of availing the exemption. Furthermore, the provincial governments will notify the exemption of sales tax on services for their respective provinces.

  • Too late… last 2 years wasted…. System completely de-energised. All related 40 plus Indusriea already dead. Now when all fighting for their lives, you want them to invest. It will years to rebuild the chain again.

  • I am a real estate broker and investor agreed with Mr.Farooq .Our goverment polices has damages not only the property and construction industry but other sectors too.

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