ISLAMABAD – The federal government is likely to provide relief to real estate sector in upcoming budget for fiscal year 2026-27.
Reports said that taxes on property buying and selling for filers may be reduced. Under proposed changes, withholding tax under Section 236K on property purchases could be lowered from 1.5 percent to 0.25 percent.
Similarly, withholding tax under Section 236C on property sales may be reduced from 4.5 percent to 1.5 percent.
Officials in the Federal Board of Revenue (FBR) said the International Monetary Fund (IMF) has been briefed about the proposed adjustments in property sector taxation.
However, no relief is expected for non-filers, who currently face nearly 10.5 percent tax on property transactions.
According to FBR data, withholding tax collection during July to March of the current fiscal year increased by 29 percent compared to the previous year.
However, higher tax rates have also contributed to a decline in capital gains tax collection compared to last year.
President Asif Ali Zardari has summoned the budget session of the Parliament for the fiscal year 2026–27 on June 5 (Friday).
According to the schedule, the National Assembly will meet at 5 pm, followed by the Senate session at 6 pm. The sittings have been called under Article 54(1) of the Constitution.
Meanwhile, discussions around the upcoming budget continue in parliamentary committees. Last week, the National Assembly Standing Committee on Finance and Revenue urged the Ministry of Finance’s Tax Policy Unit and the Federal Board of Revenue (FBR) to ensure that the federal budget moves beyond short-term stabilisation efforts and instead prioritises long-term structural reforms, improved fiscal governance, transparency, and inclusive economic growth.
For fiscal year 2026–27, GDP growth is projected to remain between 3.5% and 4.5%, while inflation has climbed back into double digits, reaching 10.9% year-on-year in April 2026.
