Federal Budget for FY-2026-27: Property withholding tax slashed by up to 50pc for filers
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ISLAMABAD – The federal government has slashed withholding tax rates on property transactions for tax filers by up to 50 per cent in the federal budget. The budget proposals presented in the National Assembly showed that the withholding tax on property purchases for filers has been reduced from 2.5 per cent to 1.25 per cent. Similarly, the withholding tax on property sales for filers has been cut from 5.5 per cent to 2.75 per cent. The announcement was made during the budget session of the National Assembly, where Finance Minister Muhammad Aurangzeb is presenting a federal budget exceeding Rs18 trillion. Officials said the revised rates are aimed at providing relief to taxpayers and encouraging documentation and formal activity in the real estate sector. The budget session of the National Assembly continues as lawmakers review various fiscal proposals announced by the government for the upcoming financial year. Govt imposes FED on imported vehicles, SUVs in federal budget The federal government on Friday decided to impose Federal Excise Duty (FED) on imported vehicles as part of the new taxation measures announced in the federal budget. Finance Minister Muhammad Aurangzeb, while presenting the federal budget in the National Assembly, said that FED would also be applied to sport utility vehicles (SUVs) with engine capacities ranging from 2,000cc to 3,000cc. He further stated that the FED on vehicles above 3,000cc would be increased under the new proposals. The government has also proposed imposing Federal Excise Duty on electric vehicles priced above Rs20 million. The finance minister said that a new auto policy is currently under consideration by a committee constituted by the prime minister. However, he clarified that the existing concessional regime for electric motorcycles, rickshaws and buses would remain unchanged. He also announced a proposal to introduce a 1 per cent sales tax facility on imported electric trucks to support cleaner transport initiatives