11/06/2026
Sources have informed that the International Monetary Fund (IMF) has agreed with the federal government on a proposal to reduce taxes in Pakistan’s real estate sector.
Under the proposal, the government plans to lower the withholding tax on the purchase of immovable property for filers under Section 236K of the Income Tax Ordinance, reducing the rate from 1.5 percent to 0.25 percent.
The government has also proposed cutting the withholding tax on the sale of immovable property for filers under Section 236C, from 4.5 percent to 1.5 percent.
Currently, Section 236K applies to property buyers. Filers pay 1.5 percent tax on properties with a fair market value of up to Rs. 50 million, 2 percent on properties valued between Rs. 50 million and Rs. 100 million, and 2.5 percent on properties worth more than Rs. 100 million.
Late filers are charged 4.5 percent, 5.5 percent, and 6.5 percent across the same three slabs, while non-filers face significantly higher rates of 10.5 percent, 14.5 percent, and 18.5 percent.
Section 236C applies to property sellers. Under the existing structure, filers pay 4.5 percent tax on sales up to Rs. 50 million, 5 percent on sales between Rs. 50 million and Rs. 100 million, and 5.5 percent on sales exceeding Rs. 100 million.
For late filers, the rates increase to 7.5 percent, 8.5 percent, and 9.5 percent respectively, while non-filers pay a flat rate of 11.5 percent across all three slabs.
According to FBR regulations, both Sections 236C and 236K are advance income tax collections made at the time of property transfer. Section 236K is collected from the buyer, while Section 236C is collected from the seller.
Capital Gains Tax (CGT) remains separate and is payable when filing an annual income tax return. Taxpayers can adjust any advance tax already paid under Section 236C against their final tax liability.
The government believes that reducing these taxes will encourage property transactions, stimulate construction activity, and support allied industries such as cement, steel, paint, transportation, and financial services. :::
This version improves flow, removes repetition, and presents the tax slabs more clearly while preserving all key details.
📍 Follow: R.k. Kiani Riffat Kamal Kiani
+923005004922 03077774922
📰 For the latest Updates defence, strategic affairs, and national security updates.
