Major tax relief for property sector in new budget

Islamabad: The federal government has abolished Federal Excise Duty (FED) on the transfer of commercial properties, plots, and houses and announced tax credit, while also reducing super tax for the corporate sector.

According to the budget document, the government has also provided relief to individuals involved in the property business. The withholding tax rate on property purchases has been reduced. It is proposed to decrease the withholding tax from 4% to 2.5%.

Similarly, in the second slab, it has been decided to reduce the withholding tax from 3.5% to 2%, and in the third slab, from 3% to 1.5%.

The new budget proposes to abolish Federal Excise Duty on the transfer of commercial properties, plots, and houses, which was imposed at 7% in the previous budget.

The government has also announced a tax credit for houses up to 10 marlas and flats of 2,000 square feet, and it has been decided to promote mortgage financing.

In the new budget, the stamp paper duty on property purchases in Islamabad has been reduced from 4% to 1%.

The new budget also includes a decision to reduce super tax by 0.5% on annual incomes ranging from Rs 200 million to Rs 500 million.