ISLAMABAD: The federal government has announced relief measures for the real estate and construction sector in the Finance Bill 2026-27, including significant reductions in transaction-related taxes.
According to the Finance Bill, the transaction tax on real estate has been reduced by 50 percent. Under Section 236C, the tax on sellers has been lowered from 5.5 percent to 2.7 percent.
The bill further states that under Section 236K, the tax on buyers has been reduced from 2.5 percent to 1.5 percent in the upcoming budget.
Officials said the revised measures are aimed at easing pressure on the property sector and encouraging investment activity.
Earlier, the Federal Government decided to continue tax incentives for the Information Technology (IT) sector, IT-enabled services, freelancers and digital exporters as part of the Federal Budget 2026–27.
According to the budget documents, the Government has recognised the IT sector, including IT-enabled services, freelancers, software houses and digital exporters, as a strategic national asset.
The concessionary Final Tax Regime (FTR) rate of 0.25% on IT export earnings was due to expire on 30 June 2026. However, on the direction of the Prime Minister, it has been proposed that this incentive be extended for a further three years, until 30 June 2029.
