The government has reduced withholding tax rates on property transactions for filers as part of the federal budget. The move is aimed at providing relief to the real estate sector. The announcement was made during the budget presentation in the National Assembly. It comes alongside broader fiscal adjustments introduced by the government.
According to budget details, withholding tax on property purchases for filers has been reduced from 2.5 percent to 1.25 percent. In addition, tax on property sales for filers has been cut from 5.5 percent to 2.75 percent. Moreover, the government said the step is intended to support market activity and ease transaction costs. Therefore, the real estate sector is expected to benefit from the changes.
Finance Minister Muhammad Aurangzeb presented the measures during his budget speech. He outlined various tax relief initiatives for different segments of the economy. Furthermore, he emphasized the need to stimulate investment and economic growth. The reforms are part of a wider fiscal strategy.
The federal budget, exceeding Rs18 trillion, is currently being presented in parliament. It includes multiple tax adjustments across sectors. Consequently, lawmakers will review the proposals before final approval. The government expects the measures to improve economic confidence.