Govt announces major tax relief for corporate sector, property buyers

The government has announced several relief measures for the corporate sector and property buyers in the new federal budget, aimed at boosting economic growth and stimulating the real estate market.

According to the budget 2025-26 details, the super tax on annual income between Rs200 million to Rs500 million will be reduced by 0.5%. This move is expected to increase liquidity in the corporate sector and encourage investment.

In another significant announcement, the government has reduced the withholding tax rate on property purchases. The new rates are as follows:

– Reduced from 4% to 2.5% in the first slab
– Reduced from 3.5% to 2% in the second slab
– Reduced from 3% to 1.5% in the third slab

These reductions are likely to make property purchases more affordable for buyers and stimulate demand in the real estate market.

Furthermore, the federal excise duty on the transfer of commercial properties, plots, and houses has been abolished, which was 7% in the previous budget. 

To encourage homeownership, the government has announced a tax credit on houses up to 10 marla and flats of 2,000 square feet. Additionally, the federal government has decided to promote mortgage financing to make housing more accessible to the masses.