Islamabad: The federal government is reportedly considering a major reduction in property transaction taxes in the upcoming federal budget 2026-27 to revive Pakistan’s slow real estate market. According to sources, the government and Federal Board of Revenue are reviewing different options to reduce withholding tax and capital gains tax on property transactions. The proposed relief aims to lower the cost of buying and selling property, encourage local investment, and attract overseas Pakistanis toward the housing sector. Reports suggest FBR has prepared multiple real estate-related proposals for the next finance bill, while official property valuations in some major cities have already been reduced by 30 to 35 percent. Can tax relief restore investor confidence and revive real estate activity?
