Islamabad (Commerce Desk) The federal government has finalized plans in the upcoming fiscal year 2026-27 budget to reduce taxes on property transactions in order to activate the real estate sector and promote construction activities.
According to sources, it has been proposed to reduce the existing tax rate of 1.5 percent on the purchase of immovable property for filers to just 0.25 percent.
Similarly, a recommendation has been made to reduce the 4.5 percent tax on property sales to 1.5 percent.
The government is holding negotiations with the International Monetary Fund (IMF) over this major policy change; however, according to sources, the global institution has raised concerns and expressed opposition to these proposals.
Sources further say that despite strict IMF conditions, discussions at the government level are ongoing to finalize these proposals.
Officials state that the reduction in taxes is expected to end stagnation in the property market and boost business activity. This move is also expected to create new investment opportunities, increase employment in the construction sector, and improve overall national tax revenues.