ISLAMABAD – The government has proposed a reduction in withholding tax on property transactions in the Budget 2026-27.
Under the proposal, the withholding tax on property purchases for tax filers would be reduced from 2.5 percent to 1.25 percent.
The budget also proposes the abolition of the Capital Value Tax (CVT) on foreign assets.
Finance Minister Muhammad Aurangzeb said the tax had been discouraging taxpayers from declaring their overseas assets. He added that removing the levy would help promote greater disclosure and documentation of foreign-held assets.
