The government has announced relief measures for property buyers in the new federal budget which is aimed at boosting economic growth and stimulating the real estate market.
According to the budget 2025-26 details, the super tax on annual income between Rs200 million to Rs500 million will be reduced by 0.5 percent This move was aimed at increasing liquidity in the corporate sector and encourage investment.
In another significant announcement, the government has reduced the withholding tax rate on property purchases. The new rates are as follows:
- Reduced from 4% to 2.5% in the first slab
- Reduced from 3.5% to 2% in the second slab
- Reduced from 3% to 1.5% in the third slab
These reductions will make property purchases more affordable for buyers and stimulate demand in the real estate market. Furthermore, the federal excise duty on the transfer of commercial properties, plots, and houses has been abolished, which was 7% in the previous budget.
To encourage homeownership, the government has announced a tax credit on houses up to 10 marla and flats of 2,000 square feet. Additionally, the federal government has decided to promote mortgage financing to make housing more accessible to the masses. To facilitate property buyers in Islamabad, the stamp paper duty on property purchases has been reduced from 4pc to 1pc.
These measures are likely to have a positive impact on the economy and provide relief to the corporate sector and property buyers.