Withholding tax on property purchases for filers cut to 1.25%

Islamabad: The government has reduced the withholding tax on property purchases for registered tax filers from 2.5% to 1.25%, aiming to promote investment in the real estate sector and strengthen the documented economy. Officials said the measure will lower transaction costs, encourage greater participation in the tax net, and provide significant financial relief to buyers. Experts note that the reduction is expected to increase market activity, facilitate easier acquisition of residential and commercial properties, and boost investor confidence. Real estate stakeholders have welcomed the decision, highlighting that it may attract new investors and stimulate construction and property development across the country.