In the Pakistan Budget 2025–26, significant changes have been proposed to the real estate taxation framework, aiming to stimulate investment, enhance transparency, and align with broader economic objectives. Here’s a comprehensive overview:
Key Real Estate Tax Reforms in Budget 2025–26
1. Reduction in Property Transaction Taxes
- Current Rates: Transaction taxes on property sales and purchases range between 3% to 4%.
- Proposed Changes: The government intends to lower these taxes to between 1.5% and 2%, and in some cases, completely eliminate taxes on property purchases to invigorate the real estate market.