Govt Plans Major Tax Relief for Real Estate Sector in Budget 2025–26
The federal government is set to introduce major incentives for the real estate and construction sector in the upcoming budget for fiscal year 2025–26. Among the key relief measures is the abolition of the Federal Excise Duty (FED) on property transactions carried out by overseas Pakistanis. Additionally, the requirement for a No-Objection Certificate (NOC) to claim tax exemptions on these purchases is likely to be removed.
Another proposal under consideration involves eliminating the FED on all real estate transactions, with the Federal Board of Revenue (FBR) expected to issue a notification effective from July 1. Changes to FED rates for late filers and non-filers are also being reviewed.
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These steps aim to boost construction activity, encourage investment in the property sector, and enhance overall tax revenue through sectoral growth. Furthermore, the budget may revise withholding tax rates on property dealings. It is also proposed that all builders and developers be formally registered starting July 1 to promote regulatory oversight and transparency in the sector.
