Islamabad, 10 June 2025: A notable adjustment to property taxation is on the horizon, as Pakistan’s administration has put forth a proposal for a 1.5% uplift in the advance tax levied on the conveyance or divestiture of immovable assets.
This significant measure, detailed within the Finance Bill 2025, signals a reinforced commitment to extracting greater revenue from the real estate sector. This Tax Hike on Land is poised to affect a broad spectrum of property transactions.
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The advance tax in question, presently imposed under section 236C at a fluctuating rate of 3-4% for registered taxpayers (filers), is typically deducted at the point of each property exchange.
The freshly tabled initiative seeks to elevate this rate by an additional 1.5% across all classifications of individuals engaged in these transactions: those who consistently file their returns, those who submit them belatedly, and individuals who are not on the tax register. This Tax Hike on Land will bring the new advance tax rates to between 4.5% and 5.5%.
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According to official documentation, the primary objective behind this proposed escalation is to augment government receipts derived from property dealings a domain explicitly identified as possessing “significant untapped potential” for contributing to national income.
