Web Desk: Relief for the real estate sector is likely to be announced in the upcoming federal budget 2026-27.
According to official sources, transaction taxes on the purchase and sale of property for filers may be reduced in the upcoming budget.
Sources in the Ministry of Finance said that withholding tax under Section 236K on property purchases will be reduced from 1.5 percent. The withholding tax under Section 236K could be lowered to 0.25 percent.
For property sales, withholding tax under Section 236C currently stands at 4.5 percent and may be reduced to 1.5 percent.
According to sources in the Federal Board of Revenue (FBR), the International Monetary Fund has been informed about the proposed changes in taxes on the property sector. No relief will be provided to non-filers on the purchase and sale of property in the budget, while non-filers currently face taxes of around 10.5 percent on property transactions.
It has been reported that withholding tax collection during July to March of the current fiscal year increased by 29 percent compared to last year. However, due to heavy taxation, capital gains tax collection also declined compared to the previous fiscal year.
The real estate stakeholders are expressing optimism for the proposed relief of tax and see it as good news which will boost customers’ interest in property dealing.
Also Read: Budget 2026: Heavy taxes likely to stay on commodities
