The federal government has announced a major reduction in withholding tax on property transactions for filers in an effort to support the construction and real estate sectors.
Under the proposal, the withholding tax on property purchases for filers will be reduced from 2.5% to 1.25%.
| Amount Market Value | Existing Tax Rate | New Tax Rate |
| Where the fair market value does not exceed Rs. 50 million | 1.5% | 1.25% |
| Where the fair market value exceeds Rs. 50 million but does not exceed Rs. 100 million | 2% | 1.25% |
| Where the fair market value exceeds Rs. 100 million | 2.5% | 1.25% |
The tax on property sales for filers will also be reduced from 5.5% to 2.75%.
| Amount Received | Existing Tax Rate | New Tax Rate |
| Where the gross amount received does not exceed Rs. 50 million | 4.5% | 2.75% |
| Where the gross amount received exceeds Rs. 50 million but does not exceed Rs. 100 million | 5% | 2.75% |
| Where the gross amount received exceeds Rs. 100 million | 5.5% | 2.75% |
The government said the construction sector has a strong link with employment generation, as it supports several allied industries, including cement, steel, paint, tiles, hardware, timber and transport.
According to the budget speech, the reduction is meant to make transaction taxes more reasonable and revive activity in a sector that has slowed due to high costs and weak demand.
The proposed relief is likely to benefit documented buyers and sellers, as the lower rates apply to filers. It may also help improve transaction volumes in the formal property market.
However, the full impact will depend on market conditions, provincial taxes and whether lower federal withholding rates are enough to offset the broader slowdown in construction activity.
اس میں یہ کلیر نہیں گیین اور ایڈونس ٹیکس۔نہ ہی کلیر ہے لیٹ فالیر اور ایکٹو کی کیا شرع ھو گی
Is this reduction also on plots.
Reh Gya Mujh Jesa Am Admi Ju 50,000 sai Kam kamata hai aur es sai mushkil sai karaya aur bill’s jama hotai hai na ham Kuch kar Saktai hai bus tax niklnai wali machine bana dya.is income mai sirf guzara hota hai 2021 mai es income mai theik thak hojata tha ab nahi BAAT Karnai ka maqsad yahi hai Kai relief kis ku milta hai aur mazeed boujh kis par Padta hai 🥹🥹😭
4•5 seller ka tax tha jo filer tha 50% cut hoto 2•25 banta hai ye clear kero
It’s a good thing in real estate