NA body backs CGT regime for inherited properties

Islamabad: The National Assembly Standing Committee on Finance and Revenue has approved a proposal to introduce a capital gains tax (CGT) regime on the sale of inherited properties and plots, as part of the tax measures being considered under the Finance Bill 2026.

During a meeting chaired by Syed Naveed Qamar, officials from the Federal Board of Revenue (FBR) presented the proposed framework, which aims to establish a clear and transparent mechanism for calculating taxable gains on inherited real estate assets.

Under the proposal, the acquisition cost of an inherited property will be deemed to be its market value on the date of the original owner’s death. This value will serve as the benchmark for calculating capital gains when the property is subsequently sold.

FBR officials explained that if a property valued at PKR 8 million at the time of inheritance is later sold for PKR 10 million, capital gains tax would apply to the PKR 2 million increase in value.

Read: Budget 2026-27: Tax cuts proposed to revive property sector

During deliberations, committee chairman Syed Naveed Qamar suggested that the property’s original value should instead be determined from the date ownership is formally transferred. The committee subsequently recommended that the actual value be calculated from the transfer date.

The committee was also informed that inherited properties transferred through family settlement arrangements would receive legal protection under the proposed framework. However, for such assets, the valuation date used to determine the property’s original cost would remain the date of the owner’s death.

According to tax authorities, the proposed regime is intended to remove ambiguities surrounding inherited assets and create a consistent system for taxing gains arising from their sale.

The proposal now forms part of the Finance Bill 2026 and will proceed through the legislative process for further consideration