ISLAMABAD: The government has announced a series of significant relief measures for the corporate sector and property buyers in the new federal budget 2025-26, aimed at boosting economic growth and revitalizing the real estate market.
Notably, the super tax on annual incomes between Rs200 million and Rs500 million will be reduced by 0.5%, a move expected to increase liquidity within the corporate sector and encourage further investment.
In an effort to make property transactions more affordable, the government has reduced the withholding tax rates on property purchases across various slabs. The new rates are now 2.5% from 4% in the first slab, 2% from 3.5% in the second, and 1.5% from 3% in the third. These reductions are likely to stimulate demand in the real estate market by easing the financial burden on buyers.
Additionally, the federal excise duty on the transfer of commercial properties, plots, and houses, which was previously set at 7%, has been abolished altogether. This move is expected to facilitate smoother property transactions and reduce costs for investors.
To promote homeownership, the government has introduced a tax credit for houses up to 10 marla and flats of 2,000 square feet. The initiative also includes efforts to boost mortgage financing, making housing more accessible to a broader segment of the population.
Furthermore, for property transactions in Islamabad, the stamp paper duty has been significantly reduced from 4% to 1%, providing further relief to property buyers in the capital. These comprehensive measures are anticipated to have a positive impact on the economy, easing financial pressures on the corporate sector and property buyers alike.
