Business
Budget 2026-27: Tax reduction to property purchasers and sellers on the cards
The federal government is also examining tax relief measures for the real estate industry in the next Budget 2026-27. Proposed cuts in transaction taxes on property purchase and sales for tax payers are being evaluated.
Official sources said the budget may also decrease transaction taxes imposed on taxpayers involved in property transfers. The suggested reforms are intended at providing relief to the real estate sector and promoting verifiable economic activity.
The withholding tax on property transactions under section 236K could be decreased from 1.5 per cent to 0.25 per cent, sources in the Finance Ministry indicated. The suggested cut is being discussed as part of broader moves to alleviate the tax burden on property buyers.
The withholding tax under section 236C on the sale of property can also be reduced in a similar way. The existing rate of 4.5 percent is likely to be reduced to 1.5 percent under the proposed budget measures.
Sources at the Federal Board of Revenue (FBR) said the International Monetary Fund (IMF) has been told about the proposed changes in the taxes on property sector.
But the non-filers are not expected to get any relief in the 2019 budget. Sources said non-filers presently pay a combined 10.5 percent on property purchases and transactions, and the rates are likely to remain constant.
Officials said the collection of withholding tax rose by 29 percent during the current fiscal year from July to March over the same time of the previous year. Sources said that despite the increase in revenue from withholding tax, revenue from gain tax dipped from the previous fiscal year due to the impact of greater taxing on property transactions.
The reforms are expected to be finalised as part of the release of the federal budget for the next fiscal year.
economy that relies heavily on agriculture but is in the middle of the Middle East crisis, which its government has assisted in resolving.
This week, Pakistan announced an initial agreement between the warring parties, but it is too late for Sindh’s mango season, which started in June.
Due to declining demand in important countries, such as the Gulf, and skyrocketing shipping costs, mango dealers told AFP they anticipate a minimum 30% decline in export sales this year.
In addition to the financial hardship, local households are delaying purchasing the fruit due to a jump in inflation brought on by the regional crisis, which is lowering domestic sales.
Following large reductions in the price of petrol and diesel, the government has lowered the price of jet fuel, which has raised anticipation for cheaper airfares.
Jet fuel is now priced at Rs238.87 per litre after a price reduction of Rs56.97 per litre, according to reports.
According to sources, a drop in jet fuel prices could result in lower airfares, which would benefit travellers.
This comes one day after the government announced significant price reductions for petrol and diesel, lowering them by Rs74.28 and Rs67.31 per litre, respectively.
Today, Sunday, the National Assembly is set to formally begin the process of approving the government budget for the next fiscal year.
The National Assembly will hear 135 grant requests totalling more than PKR 104.14 trillion from Finance Minister Muhammad Aurangzeb for final clearance.
It is anticipated that 88 of these requests, totalling more than Rs 43.85 trillion, will be approved without any reduction motions. But the opposition is getting ready to use detailed cut motions to contest a sizable chunk of the budget.
Details show that 587 cut motions on 47 proposals totalling more than Rs 60.29 trillion would be submitted by opposition MPs.
During the process, a number of ministries and divisions are also being examined. There are 91 cut motions on 19 demands that the Cabinet Secretariat and its affiliated departments must deal with. There will be 116 cut motions to discuss the six demands of the Energy Division, which total more than Rs 661.26 billion.
The Ministry of Interior would be exposed to 123 reduction motions on four claims totalling more than Rs 74.35 billion, while the Ministry of Finance itself will face 100 cut motions on demands over Rs 42.82 trillion.
Additionally, the opposition will bring 45 cut motions for the Poverty Alleviation Division, which has allocations above Rs 859 billion across three demands.
Over the next few days, the assembly is anticipated to continue the budget approval process amid in-depth discussion, examination, and political contestation.
According to Ali Pervaiz Malik, the Pak-Iran gas pipeline proposal is still being considered.
A significant improvement for drivers using motorways and highways
Mango exports from Pakistan decline as the effects of the Middle East conflict persist
ICC board meeting in India: Mohsin Naqvi gets invitation
The IMF mission has arrived in Pakistan for discussions regarding the budget.
Oil hits 2-week high following drone strike on UAE nuclear power facility
-
Latest News1 month agoICC board meeting in India: Mohsin Naqvi gets invitation
-
Business1 month agoThe IMF mission has arrived in Pakistan for discussions regarding the budget.
-
Business1 month agoOil hits 2-week high following drone strike on UAE nuclear power facility
-
Latest News2 weeks agoShehbaz, Zardari discuss key issues as PPP hints at budget support
-
Latest News3 weeks agoIs the US-Iran standoff exposing deep fault lines in US intelligence coordination?
-
Business1 month agoIn the open market, flour prices increase by Rs 700 per mound.
-
Latest News1 month agoTwenty people suffered injuries when a picnic bus from Karachi toppled en route to Kenjhar.
-
Latest News1 month agoThis week is anticipated to see a decision about Mohsin Naqvi’s journey to India.