FBR notifies reduction in property withholding tax rates

Islamabad: The Federal Board of Revenue (FBR) has informed taxpayers about a potential reduction in the withholding tax on property transactions, with rates expected to decrease from 1.5% to 0.25%. This adjustment is part of the government’s efforts to streamline taxation on property sales and promote transparency in real estate transactions. Officials emphasized that the revised rates aim to encourage property market activity, improve compliance, and reduce the financial burden on buyers and sellers. Enhanced tax clarity may also support investment in residential and commercial real estate sectors. Will this move boost property transactions and stimulate urban development in Pakistan?