The anticipation surrounding the budget 2025-26 is reaching a peak, and the real estate sector in Pakistan is poised to receive positive news. The government is expected to abolish the Federal Excise Duty (FED) on property transactions. The FED, which has varied between 3% for registered filers and 7% for non-filers, has not proven to be a significant revenue generator and has instead contributed to the burden faced by developers and prospective buyers. Removing this tax is expected to encourage investment and ease financial constraints hovering over the sector.
In conjunction with the FED removal, the budget 2025-26 is expected to include a substantial reduction in stamp duty from 5% to 1%. This comprehensive tax relief package aims to create a more favorable environment for both property developers and buyers alike. As stakeholders await the official announcement, the optimism surrounding these significant changes could herald a new era of growth within the real estate sector, promising a resurgence in activities that may bolster the economy as well.
