-
-
The government has abolished the federal excise duty on property transfer to support the corporate sector in Pakistan’s new budget for the fiscal year 2025–26.
This major step removes the 7 percent excise duty that was previously charged on the transfer of commercial properties, plots, and houses, offering relief to buyers and investors.
The budget also proposes a reduction in super tax by 0.5 percent for those earning between Rs 200 million and Rs 500 million annually, aiming to ease the tax burden on large businesses.
In addition, the withholding tax on property purchases has been lowered across multiple slabs to encourage more real estate transactions in the formal market.
READ: Budget 2025-26: Govt reduces income tax rates for salaried workers
The first slab’s tax will now be 2.5 percent instead of 4 percent, the second slab has dropped to 2 percent from 3.5 percent, and the third slab is reduced to 1.5 percent from 3 percent.
A key housing sector incentive is a tax credit for individuals purchasing houses up to 10 marla or flats up to 2,000 square feet, a move meant to support urban housing.
The government also aims to boost mortgage financing, making homeownership easier for the middle class through increased access to bank financing and housing loans.
For residents of Islamabad, stamp duty on property purchases has been reduced from 4 percent to just 1 percent, significantly cutting transaction costs for buyers in the capital.
These budgetary decisions reflect the government’s efforts to stimulate investment in the real estate sector, boost construction, and support corporate growth in fiscal year 2025 – 26.
