Government Likely to Abolish Withholding Tax and Federal Excise Duty on Property Transactions – A Game Changer for Real Estate in Pakistan
In a move that could transform Pakistan’s real estate sector, sources reveal that the federal government is seriously considering abolishing Withholding Tax (WHT) and Federal Excise Duty (FED) on the buying and selling of properties. This significant reform is expected to be part of the upcoming Federal Budget 2025-26 and could bring widespread benefits for both investors and the construction industry.
For years, real estate professionals and investors have expressed concerns about the heavy taxation imposed on property transactions. Withholding Tax, which is typically deducted at the time of property purchase, and Federal Excise Duty, which applies to certain transactions and construction materials, have often acted as barriers to growth in the sector. If these taxes are removed, we could see a boom in property activity across Pakistan, especially in prime locations like Bahria Town Phase 7 and Phase 8, where investor interest remains consistently high.
Why This Change Matters
Withholding Tax and FED have long been considered bottlenecks in the property transaction process. These taxes increase the cost of ownership, reduce profit margins, and often discourage investors—especially overseas Pakistanis—from participating in the real estate market.
By removing these taxes, the government would:
Encourage investment from both local and international buyers
Revive the construction industry, creating jobs and boosting related sectors such as cement, steel, and interior design
Increase government revenue indirectly through documentation and volume of transactions rather than direct taxation
Stabilize property prices by balancing demand and supply
Boost the overall economy by increasing real estate’s contribution to GDP
Sultan’s Group of Companies Welcomes This Development
As a leading name in Pakistan’s real estate sector, Sultan’s Group of Companies welcomes this initiative. We believe that tax reforms like these will inject much-needed energy into the market and empower both individual buyers and large-scale investors to take confident steps forward.
At Sultan’s, we’ve always emphasized transparent, ethical, and investor-friendly practices. Our team closely monitors policy changes so that our clients remain informed and ahead of the curve. The anticipated removal of WHT and FED aligns perfectly with our mission to make property investment easier, safer, and more profitable.
What This Means for You
If you’re planning to buy or sell property in Bahria Town Phase 7, Phase 8, or surrounding areas, this could be the most opportune time to take action. Property values in these regions have shown steady appreciation, and the possible tax cuts could further accelerate growth.
For buyers, this means lower transaction costs and greater affordability. For sellers, it means a larger pool of interested and capable buyers. And for investors, especially those eyeing rental properties or long-term gains, the expected surge in demand could translate into impressive returns.
Real Estate Investment – A Safe Haven Amid Economic Uncertainty
Despite global economic challenges, real estate in Pakistan has remained a relatively stable investment option. This upcoming reform adds a new layer of confidence to the market. With property expected to become more accessible, we anticipate increased participation from the middle class, as well as a revival in construction activity that benefits a wide range of industries.
At Sultan’s Group of Companies, we are already preparing for the post-budget real estate landscape. We’re offering pre-booking options, investment consultations, and turnkey solutions for those looking to capitalize on this new opportunity.
Why Choose Sultan’s Group of Companies?
✅ Over a decade of experience in Bahria Town’s residential and commercial real estate
✅ Dedicated team of property advisors, architects, and legal experts
✅ Transparent pricing, verified listings, and complete documentation support
✅ Customized investment solutions based on your goals and budget
✅ Excellent track record in plot deals, home construction, and rental properties
Let’s Build Your Future Together
Whether you’re an end-user looking to buy your dream home or an investor seeking high returns in a tax-relieved environment, this is your moment. Sultan’s Group is here to help you make informed, profitable, and secure real estate decisions.
We believe in not just selling property—but delivering peace of mind.
📞 Contact Us Today!
Sultan’s Group of Companies
📍 Office #46, 1st floor, Square Commercial, Phase 7, Bahria Town, Rawalpindi.
📞 UAN: 92 331 000 4444
