ISLAMABAD – Pakistani government proposed sweeping tax relief for Pakistan’s property sector in upcoming federal budget 2026-27, seeking to end taxes on property purchases and sales for tax filers.
Amid plans to revive real-estate industry, the proposal become a key point of discussion with International Monetary Fund (IMF), as the global lender is insisting that a minimum tax remain in place on property transactions to ensure documentation of the sector.
IMF is pushing for levy ranging between 0.5 and 1 percent instead of a complete exemption. The proposed relief is part of broader budget negotiations aimed at stimulating economic activity while balancing revenue requirements under Pakistan’s IMF-backed reform programme.
Alongside the property-sector incentives, the government has also proposed reducing income tax rates for middle-income salaried individuals, cutting the super tax on corporations from 10 percent to 8 percent, and abolishing the one percent advance income tax currently imposed on exports.
Talks are underway over sales tax concessions on several products as IMF is pressing for standard 18 percent General Sales Tax (GST) to be applied to a range of currently concessionary items, including solar panels and hybrid vehicles. Pakistan, however, is seeking to retain lower tax rates on electric vehicles to support energy conservation and environmental goals.
The government is also awaiting IMF approval for its proposed reduction in tax slabs for salaried employees as discussions over next year’s revenue targets enter a critical phase.
What Reliefs are expected for Pakistanis in Budget 2026–27 amid IMF Talks?
