The government has announced significant tax relief measures for Pakistan’s real estate sector, aiming to revive investment activity and make property transactions more affordable for both buyers and sellers.
Under the latest reforms, the seller tax has been reduced from 5.5% to 2.75%, while the purchaser tax has been cut from 2.5% to 1.25%. In a major development, the 7E tax has been completely abolished, removing a key cost burden on property owners.
In addition, the Federal Board of Revenue (FBR) has reduced property valuation rates, a move expected to lower overall transaction costs and bring valuations closer to market realities.
Market analysts say these steps could help improve liquidity in the real estate sector, encourage fresh investment, and revive stalled property transactions that have faced pressure due to high taxation and elevated costs in recent years.
Industry stakeholders are expected to welcome the reforms, as lower taxes and revised valuations are likely to increase activity in the housing and construction market.
Officials believe the measures will not only support property investors but also stimulate related sectors such as construction, banking, and cement, contributing to broader economic momentum.
