Islamabad News: Good news for the real estate sector of Pakistan, as the government cut the property transaction taxes to 50% in the budget 2026-27. It will be a major policy shift to revive the country’s real estate sector.
According to the federal budget summary, the withholding taxes under the Sections 236C (seller tax) and 236K (purchaser tax) were substantially reduced by half compared to previous rates.
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New Seller Tax Rates
Under the new transaction property tax rates, the seller tax under Section 236C is reduced to half, boosting the liquidity. Here are the complete details about the new seller tax in the Federal Budget 2026-27:
| Property Value | Old Rates | New Rates |
| Up to 50 Million | 4.5% | 2.25% |
| Up to 100 Million | 5% | 2.5% |
| Above 100 Million | 5.5% | 2.75% |
New Seller TaxNew Purchaser Tax Rates
Similarly, the federal government also reduced the purchaser tax rates under Section 236K in the fiscal budget 2026-27. It reduces costs for new investors and end users, providing them with an affordable entry point into the real estate industry.
| Property Value | Old Rates | New Rates |
| Up to 50 Million | 1.5% | 0.75% |
| Up to 100 Million | 2% | 1% |
| Above 100 Million | 2.5% | 1.25% |
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Key Takeaway
The deduction in Property Transaction Taxes in the Federal Fiscal Budget 2026-27 is a huge relief for the real estate and construction sectors. Market analysts believe this substantial slash will revive long-term investor confidence. With aggregate transfer taxes dramatically lowered, the cost of doing business drops effectively.
Stay tuned to Sky Marketing for more updates.
