Islamabad: The federal government is considering major reductions in property transaction taxes in the upcoming budget to provide relief to buyers and revive activity in the real estate sector. Initial budget proposals suggest that withholding tax on property buyers under Section 236K may be reduced to around 1.5 percent to 2.5 percent, despite concerns reportedly raised by the IMF. Punjab is also reviewing a proposal to cut stamp duty on property transfers to 1 percent, which could significantly lower transaction costs. Experts believe the move may increase registered property deals, improve investor confidence, and support construction-linked economic activity. However, revenue concerns remain important. Can lower taxes bring transparency and fresh momentum to Pakistan’s property market?
