Islamabad, June 5, 2025: The federal government is planning major relief for the real estate sector and construction industries in the upcoming budget 2025-26.
Authorities have decided to abolish the federal excise duty (FED) on property dealings made by overseas Pakistanis. Moreover, the condition of acquiring a no-objection certificate (NOC) for tax waivers on property acquisitions by overseas Pakistanis is also expected to be withdrawn.
A separate suggestion to eliminate FED on all property-related transactions is under discussion, with the Federal Board of Revenue (FBR) likely to release an official notification putting this into effect from July 1.
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Adjustments in FED rates for individuals who delay filing or are non-filers are also being evaluated. Removing the FED is aimed at boosting construction activity and expanding tax revenue by accelerating sectoral expansion.
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The upcoming budget may also propose an update in the withholding tax slabs on real estate dealings. It is further suggested that all builders and developers operating in the sector be formally registered starting July 1.
