The federal government has approved changes in advance tax rates on property transactions while also increasing the tax burden on banks and corporate entities under the Finance Bill 2026–27.
The revised measures will take effect from July 1 with the start of the new fiscal year.
Advance tax on property transactions has been reduced. Sellers will now pay 2.75 percent advance tax on the total value of the property, while buyers will be charged 1.25 percent tax based on fair market value.
In parallel, the government has increased taxation on the corporate and banking sectors.
From July 1, banking companies and the fertilizer sector will pay 10% tax on income exceeding Rs. 150 million, while other corporate companies will be subject to 8% tax on income above Rs. 500 million.
The revised structure is part of broader fiscal adjustments aimed at balancing revenue needs with sector-wise taxation changes across the economy.
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