Budget 2025 Tax Rules — “Buyers Win, Sellers Lose?
June 29, 2025
The 2025 budget brings a golden opportunity for property buyers in Pakistan, making real estate more affordable than ever. Key tax cuts include reduced holding taxes, the complete removal of the 7% federal excise duty, and a drastic drop in stamp duty in Islamabad from 4% to just 1%. These historic reductions slash upfront costs and lower the barrier to entry for buyers. The government is also working with the State Bank to expand mortgage financing, making it easier to own a home, especially for first-time buyers. With sellers facing higher taxes, it’s a buyer’s market — now is the ideal time to invest before prices and demand rise.
🏠 Tax relief introduced for property buyers by reducing holding taxes and abolishing federal excise duty.
📉 Stamp duty in Islamabad cut significantly from 4% to 1% to lower transaction costs.
💰 Increased taxes on property sellers, with rates rising up to 5.5% for high-value properties.
🚫 Non-filers face severe restrictions, barred from buying property, vehicles, or opening bank accounts from July.
🏡 Mortgage financing support planned for small homes in collaboration with the State Bank.
⚠️ Experts warn that relief only for buyers may not revive the real estate sector.
🔄 Budget reallocates tax burden from buyers to sellers, creating potential market uncertainties.
In conclusion, Pakistan’s new budget for the real estate sector offers a mixed bag: meaningful tax relief for buyers and potential support for affordable housing, but increased taxes and restrictions on sellers and non-filers could pose challenges. The sector’s revival hinges on how these policies are implemented, whether further adjustments are made, and if clear communication and balanced measures are adopted to create a conducive environment for both buyers and sellers.