Breaking: Pakistan govt announces major tax relief for real estate sector, salaried class

Pakistan government cuts property taxes and reduces income tax rates for salaried individuals, offering major relief aimed at boosting investment, real estate, and economic activity.

WEBDESK – MEDIABITES NEWS

In a major relief package for the real estate sector, overseas Pakistanis, and salaried individuals, the federal government has announced significant cuts in property transaction taxes and income tax rates in an effort to stimulate investment and economic activity.

According to the latest budgetary measures, the government has sharply reduced taxes on the sale and purchase of properties across multiple categories.

For property sales worth up to Rs50 million, the tax rate has been slashed from 4.5% to 2.75%.

Similarly, for properties valued above Rs50 million, the tax rate has also been reduced from 5% to 2.75%, providing substantial relief to investors and property owners.

The government has also reduced taxes on property purchases to encourage investment in the real estate market.

For properties worth up to Rs50 million, the purchase tax has been cut from 1.5% to 1.25%.

For properties valued between Rs50 million and Rs100 million, the tax rate has been reduced from 2% to 1.25%.

Meanwhile, for properties exceeding Rs100 million in value, the purchase tax has also been lowered from 1.5% to 1.25%, creating uniform relief across major investment categories.

In another major announcement, the government abolished the 1% Capital Value Tax (CVT) for overseas Pakistanis on property investments.

The CVT has now been reduced to 0%, fulfilling a longstanding demand of overseas Pakistanis aimed at encouraging foreign investment and strengthening economic ties with expatriates.

The government also announced tax relief for the salaried class under the new budget.

For individuals earning between Rs2.2 million and Rs3.2 million annually, the income tax rate has been reduced from 23% to 20%.

For annual incomes between Rs3.2 million and Rs4.1 million, the tax rate has been cut from 30% to 25%.

Those earning between Rs4.1 million and Rs5.6 million annually will now pay 29% tax instead of 35%.

Meanwhile, taxpayers earning between Rs5.6 million and Rs7 million annually will see their tax rate reduced from 35% to 32%.

Officials say the measures are intended to revive the property market, boost business confidence, attract overseas investment, and provide relief to the middle and upper-middle-income salaried class amid ongoing economic challenges.