Islamabad: The federal government has proposed a series of tax relief measures for the real estate and construction sectors in Budget 2026-27, aiming to stimulate investment, increase market activity and encourage tax compliance.
Under the proposed reforms, withholding tax rates on property transactions have been significantly reduced for active taxpayers. The withholding tax applicable to property purchase by filers has been lowered from 2.5% to 1.25%, while the rate for sellers (filers) has been cut from 5.5% to 2.75%.
The budget also proposes the abolition of Section 7E, which imposed a deemed income tax on certain immovable properties. The provision treated eligible properties as generating a deemed income equivalent to 5% of their value and was widely criticised by stakeholders. The move follows a recent court ruling declaring the tax unconstitutional.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
