The government is considering significant reductions in transaction taxes on the real estate sector in the FY2026-27 budget as part of efforts to lower property transaction costs and attract investment from overseas Pakistanis.
Sources told Business Recorder that authorities are actively working on proposals to reduce withholding taxes and capital gains tax (CGT) on the purchase and sale of immovable properties. The proposed measures are expected to be included in the Finance Bill 2026.
The move comes as the government seeks to revive activity in the real estate and housing sectors, which industry stakeholders argue have been burdened by high taxation in recent years.
As part of these efforts, the Federal Board of Revenue (FBR) has already reduced the valuation of immovable properties by 30 percent to 35 percent in Islamabad, Rawalpindi, Faisalabad, Sialkot, Multan, Bahawalpur, and Gujranwala, effective April 22, 2026.
According to reports, the FBR has informed the National Assembly Standing Committee on Finance that discussions are underway with the International Monetary Fund (IMF) regarding a reduction in withholding tax rates on property transactions. The government is also considering harmonizing provincial deputy commissioner (DC) rates with FBR property valuation rates to simplify the taxation framework.
Muhammad Ahsan Malik, a senior real estate analyst, said the government is committed to facilitating overseas Pakistanis and encouraging both foreign and domestic investment in the property market. He added that lower transaction costs could help attract more investment into the housing sector.
The proposed relief comes ahead of the federal budget, where the government is expected to announce a series of measures aimed at supporting investment, improving documentation, and stimulating economic activity in key sectors.
jab gaa*d lgti hei phatne tau prasad lgte hein batne….who is naive enough to believe them.