Big news for property buyers! With IMF approval, the government has reduced key taxes on real estate transactions. This is a significant relief for investors and buyers. Lower costs will boost market activity, increase investment, and create new opportunities. Realtors and dealers across Pakistan celebrate this positive step toward a thriving property sector.
You can get more information by watching this video: Property Tax relief 2025 from IMF
|
Tax Type |
Previous Rate |
New Rate |
|
Withholding Tax (WHT) on Buyers |
3-4% |
Reduced by 2% |
|
Federal Excise Duty (FED) on Buyers |
10% |
9% |
|
Federal Excise Duty (FED) on Sellers |
Unchanged |
Unchanged |
The Federal Board of Revenue (FBR) initially proposed tax reductions for buyers and sellers under Sections 236C and 236K of the Income Tax Ordinance. However, the IMF approved the reduction only for buyers. Here’s how the new rates compare:
|
Tax Type |
Section |
Previous Rate |
New Rate |
|
WHT on Buyers |
236K |
3-4% |
Reduced by 2% |
|
WHT on Sellers |
236C |
Unchanged |
Unchanged |
|
WHT on Late Filers |
236K |
6% |
It is not yet confirmed that this is Reduced by 2% or not |
|
WHT on Non-Filers |
236K |
12% |
It is not yet confirmed that this is Reduced by 2% or not |
High taxation has slowed the real estate market for years by discouraging buyers. The new tax relief will make property investment more attractive, leading to:
Another important update is the revision of the FBR’s tax collection target. The IMF has approved a downward revision due to the Eid holidays:
|
Time Period |
Previous Target |
New Target |
|
March 2025 |
Rs1,220 billion |
Rs1,160 billion |
|
Full Year 2025 |
Rs12,970 billion |
Rs12,332–12,334 billion |
To meet the new targets, the FBR has been instructed to boost collections in April and May. This means realtors and investors should stay updated on any further policy changes.
The IMF has also approved the government's plan to raise Rs1,257 billion through banks to tackle the growing circular debt in the power sector. A stable energy sector will benefit businesses and improve overall economic conditions, indirectly supporting the real estate market.
On behalf of all realtors, dealers, and investors, I extend my heartfelt congratulations to the government for taking this much-needed step. Lower transaction costs will make property dealings easier and attract more investors. This is a significant achievement for our sector and a step toward economic stability.
We hope the government will continue introducing policies that strengthen the real estate industry. With increased investment, job creation, and market stability, Pakistan’s property market has a bright future.
Once again, congratulations to all realtors. May Allah bless Pakistan with continued prosperity and success. Ameen!
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