Pakistan’s government has proposed a record 9.5% withholding tax on non-filers selling properties worth Rs100 million or more in the Finance Bill 2025-26.
During a National Assembly’s Standing Committee on Finance session, chaired by Naveed Qamar, the Federal Board of Revenue (FBR) announced tiered withholding tax rates for non-filers. Properties valued at Rs100 million or more will face a 9.5% tax, up from 8%, while those below Rs100 million and Rs50 million will incur 8.5% and 7.5% rates, respectively. The Finance Bill 2025-26 aims to expand the tax base and align with International Monetary Fund (IMF) benchmarks.
FBR Chairman Rashid Mahmood Langrial stated, “Our hands are tied. There is no longer room for blanket tax exemptions,” highlighting IMF influence on the reforms. The proposal shifts the tax burden from buyers to sellers, targeting non-filers outside the formal tax system.
Read: FBR Arrest Powers in Finance Bill 2025-26 Face Senate Opposition
The bill extends tax exemptions for former FATA and PATA regions, excluding sales tax, for one more year. However, exemptions for Special Economic Zones (SEZs) and Special Technology Zones (STZs) are set to be removed, signalling a standardised taxation approach. The Senate Standing Committee on Finance opposed amendments allowing state-owned enterprises to retain revenues, insisting earnings be transferred to the Federal Consolidated Fund for transparency.
Analysts predict the proposed taxes will significantly affect Pakistan’s real estate sector, a traditional haven for untaxed assets. The government seeks to enhance fiscal accountability and curb tax evasion by targeting non-filers.
