{"id":102215,"date":"2025-05-12T10:43:00","date_gmt":"2025-05-12T05:43:00","guid":{"rendered":"https:\/\/www.zameen.com\/news\/?p=102215"},"modified":"2025-05-13T16:47:31","modified_gmt":"2025-05-13T11:47:31","slug":"major-tax-relief-for-real-estate-in-budget-2025-26","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/major-tax-relief-for-real-estate-in-budget-2025-26.html","title":{"rendered":"Govt plans major tax relief for real estate in Budget 2025\u201326"},"content":{"rendered":"\n<p>Islamabad: The federal government is preparing to unveil significant tax relief measures for the real estate sector in the upcoming Budget 2025\u201326, aimed at boosting property market activity and easing tax burdens on transactions.<\/p>\n\n\n\n<p>Effective from July 1, 2025, the proposed reforms include the rationalization of Capital Gains Tax (CGT) and a reduction in withholding taxes on the sale and purchase of immovable properties, according to sources cited by <em>Business Recorder<\/em>.<\/p>\n\n\n\n<p>Under the current tax framework, CGT is imposed on the sale of real estate under Section 37 of the Income Tax Ordinance, 2001. The planned revision will adjust CGT rates to reflect the impact of rising inflation and escalating property prices. The tax is paid by property sellers at the time of filing their income tax returns.<\/p>\n\n\n\n<p>Additionally, the government is expected to abolish the Federal Excise Duty (FED) on immovable property transactions. A key withholding tax under Section 236C\u2014currently set at 3% and charged to sellers\u2014is also likely to be reduced to encourage more transactions in the formal property market.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/major-tax-cuts-expected-to-boost-property-market.html\" target=\"_blank\" rel=\"noreferrer noopener\">Property tax reduction expected to boost real estate market: Sheikhani<\/a><\/p>\n\n\n\n<p>These proposals form part of a broader fiscal strategy aimed at stimulating investment in the real estate sector and simplifying the tax structure. The government also plans to rationalize withholding taxes across various sectors, particularly where no direct income is earned. For example, lower rates are expected on the import of raw materials and certain financial transactions. However, income-based taxes, such as those on dividends, will remain unchanged.<\/p>\n\n\n\n<p>Analysts view the reforms as a move to improve compliance, enhance liquidity in the property sector, and attract both domestic and foreign investment. Full details of the proposed measures will be announced in the federal budget presentation, expected in June.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Islamabad: The federal government is preparing to unveil significant tax relief measures for the real estate sector in the upcoming Budget 2025\u201326, aimed at boosting property market activity and easing tax burdens on transactions. Effective from July 1, 2025, the proposed reforms include the rationalization of Capital Gains Tax (CGT) and a reduction in withholding taxes on the sale and purchase of immovable properties, according to sources cited by Business Recorder. Under the current tax framework, CGT is imposed on the sale of real estate under Section 37 of the Income Tax Ordinance, 2001. The planned revision will adjust CGT rates to reflect the impact of rising inflation and escalating property prices. The tax is paid by property sellers at the time of filing their income tax returns. Additionally, the government is expected to abolish the Federal Excise Duty (FED) on immovable property transactions. A key withholding tax under Section 236C\u2014currently set at 3% and charged to sellers\u2014is also likely to be reduced to encourage more transactions in the formal property market. Read: Property tax reduction expected to boost real estate market: Sheikhani These proposals form part of a broader fiscal strategy aimed at stimulating investment in the real estate&hellip;<\/p>\n","protected":false},"author":18,"featured_media":63128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15015],"tags":[64589,5908,3281,4367,21871,52814,63000,60626,37769,60206,34475,17738,7844,64590,33,21020,31455,57402,1109,3822],"persona":[],"class_list":{"0":"post-102215","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-taxation","8":"tag-budget-2025-26-2","9":"tag-budget-proposals","10":"tag-capital-gains-tax","11":"tag-cgt","12":"tag-fed","13":"tag-federal-excise-duty","14":"tag-finance-ministry","15":"tag-fiscal-policy","16":"tag-income-tax-ordinance","17":"tag-investment-incentives","18":"tag-pakistan-economy","19":"tag-property-market","20":"tag-property-sector","21":"tag-property-tax-relief","22":"tag-real-estate","23":"tag-real-estate-transactions","24":"tag-tax-compliance","25":"tag-tax-cuts","26":"tag-tax-reforms","27":"tag-withholding-tax","28":"cat-15015-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Major tax relief for real estate in Budget 2025\u201326 - Zameen News<\/title>\n<meta name=\"description\" content=\"The proposed reforms include the rationalization of Capital Gains Tax (CGT) and a reduction in withholding taxes on the sale and purchase...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/major-tax-relief-for-real-estate-in-budget-2025-26.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Major tax relief for real estate in Budget 2025\u201326 - Zameen News\" \/>\n<meta property=\"og:description\" content=\"The proposed reforms include the rationalization of Capital Gains Tax (CGT) and a reduction in withholding taxes on the sale and purchase...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/news\/major-tax-relief-for-real-estate-in-budget-2025-26.html\" \/>\n<meta property=\"og:site_name\" content=\"Pakistan Real Estate News &amp; 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