by furqanIn a major move to revitalize the property market, the government is reportedly preparing a substantial tax relief package for real estate transactions in the upcoming Budget 2026-27. The initiative aims to stimulate both the construction and real estate sectors, driving economic activity and creating new jobs across the country.
Official sources indicate that the proposed budget measures focus on sharply reducing withholding tax rates under Sections 236C and 236K of the Income Tax Ordinance. Under the new proposals, tax filers would see the withholding tax on property purchases slashed from 1.5% to just 0.25%, while the tax on property sales could drop from 4.5% down to 1.5%.