Gov of Pakistan has Decided to withdraw 3% FED on Properties

The government of Pakistan has decided to withdraw the 3% FED on the first sale of properties from July 2025 onwards. The government of Pakistan wants to reserve a FED of 3% on first-sale properties because the sale and purchase of properties have been damaged by unnecessary taxes applied to property sales and purchases, which not only affected FBR tax collection but also hampered the sale and purchase of property through the FBR. Moreover, it was reported that people are opting to purchase property through power of attorney, which bypasses FBR, and it is a way to avoid hefty taxes. 

Moreover, FBR official sources confirmed to The Express Tribune that the government of Pakistan and the IMF have done a consultation in this regard and a decision has been made. Moreover, it is expected that the IMF mission is going to come to Pakistan on 14th May to consult on budget and taxes for FY 2026. The government of Pakistan has decided to withdraw the 3% FED on filers and 5% on non-filers for first-time property sales. FBR has already moved a summary in this regard.

Additionally, house sectors and developers in the last couple of months demanded the government of Pakistan withdraw these hefty taxes on properties so that they can attract foreign investment and stop the outflows of dollars from Pakistan. They said that people are taking their money out of Pakistan and investing in other countries due to massive taxes on property sales and purchases. Moreover, a couple of months back, the PM of Pakistan said that he would look into this matter and consult with the IMF in this regard.

It is worth mentioning that even the FBR warned the IMF that these taxes on properties won't solve issues, and they are going to impact tax collection as well. FBR advised the IMF to revise these taxes a couple of months back; however, now the decision has been taken that they will withdraw these taxes from July 2026 onwards.