Islamabad (National Times) The federal government has proposed significant reductions in withholding tax rates on property transactions in the budget 2026-27.

According to Finance Minister Muhammad Aurangzeb, the withholding tax on property purchase for filers is proposed to be reduced from 2.5 percent to 1.25 percent.

Similarly, the tax on property sales is proposed to be reduced from 5.5 percent to 2.75 percent.

The government said the measures are aimed at boosting activity in the real estate sector, improving liquidity, and encouraging investment in construction and housing.