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Budget 2025 set to ease taxes for real estate and construction

MM News Staff by MM News Staff
June 10, 2025
Budget 2025

(Image: Samaa)

Relief is expected for the property, real estate, and construction sectors in the new budget, as reported by national media on Tuesday. 

As part of the tax measures under Budget 2025-26, the elimination of Federal Excise Duty (FED) for the property and real estate sector is under consideration. If approved, the removal of FED may take effect from July 1, 2025. This move is expected to boost activity and tax revenue in the construction sector.

The budget also outlines plans to initiate registration of builders and developers associated with the real estate sector. Incentives are being planned to encourage overseas Pakistanis to invest in the construction industry.

It is also being considered to remove FED on property transactions for overseas Pakistanis, along with scrapping the requirement of obtaining a No Objection Certificate (NOC) for tax exemption on property purchases.

Changes are being weighed for excise duty on property purchases by late filers and non-filers. In addition, adjustments to the withholding tax on property transactions are being proposed.

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