ISLAMABAD – The federal government has proposed major relief for real estate sector in budget for fiscal year 2025-26, a move that would again bring boom in this sector.
Finance Minister Muhammad Aurangzeb said the government has proposed decreasing the standard withholding tax on property transactions .
WHT Reduced
The budget has proposed lowering the withholding tax rates on property purchases:
From 4% to 2.5%
From 3.5% to 2%
From 3% to 1.5%
FED Revoked
In a major shift for the real estate sector, the government has decided to abolish the 7 percent federal excise duty (FED) imposed last year on the transfer of commercial properties, plots, and houses.
Furthermore, the government has announced a tax credit for houses measuring up to 10 marlas and flats up to 2,000 square feet in a bid to encourage home ownership.
It also plans to promote mortgage financing as part of its broader housing policy.
Stamp Duty Slashed
Additionally, stamp duty on property purchases in Islamabad has been slashed from 4 percent to 1 percent, a step expected to boost real estate activity in the capital.
Meanwhile, Aurangzeb said the government has proposed a 0.5 percent reduction in super tax for companies with annual earnings between Rs200 million and Rs500 million. The move is aimed at easing the tax burden on mid-sized businesses.
https://pakobserver.net/pakistan-unveils-rs17-6tr-budget-for-fy-2025-26-amid-opposition-protest/
