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Real Estate Tax in Pakistan 2025: 3% FED Abolished | Beacon Builders
Real Estate Tax in Pakistan 2025: Big Win for Real Estate Investors – 3% FED Abolished,
The real estate landscape in Pakistan just got a major boost — the government has officially abolished the 3% Federal Excise Duty (FED) on the first sale of immovable properties. This change is not just a tax relief — it’s a powerful step towards revitalizing Pakistan’s property sector.
At Beacon Builders, we believe in keeping our clients ahead of the curve. Here’s what this means for investors, homeowners, and developers across the country.
Real Estate Tax in Pakistan 2025
What Was the 3% FED on
Real Estate Tax in Pakistan?
Real Estate Tax in Pakistan?
Introduced in the FY 2024–25 budget, the 3% FED was applied on the first sale or allotment of residential and commercial properties by builders and developers:
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3% for tax filers
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5% for late filers
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7% for non-filers
It was a non-adjustable tax that increased property costs and discouraged transactions — especially for genuine buyers and mid-scale investors.
Why the FED Has Been Removed
After facing legal and constitutional challenges (as real estate is a provincial subject), the federal government has decided to repeal the FED. Key reasons include:
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Legal ambiguity due to overlap with provincial authority
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Reduced market activity because of additional cost burden
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Negative impact on genuine buyers and low-cost housing
This is part of a broader push to make real estate more affordable, transparent, and investment-friendly in 2025.
What’s Next for Real Estate in Pakistan?
In addition to the FED abolition, the government and the Prime Minister’s Task Force on Housing are recommending several pro-real estate reforms:
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Removal of the deemed rental income tax
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Streamlining of stamp duties and CVT
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Capital Gains Tax (CGT) to revert to slab-based system
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Tax relief for first-time buyers and low-cost housing
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Property valuation updates every 3 years
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Improved transparency and one-window approval systems
These developments aim to create a real estate ecosystem that supports both local and overseas investors.
What This Means for Investors
This move is expected to:
✅ Lower entry barriers for property buyers
✅ Revive stalled projects and boost new developments
✅ Improve market liquidity and investment returns
✅ Reinforce confidence in Pakistan’s real estate sector
Whether you’re planning to buy your first home, invest in a commercial project, or explore rental income properties, now is the time to evaluate your options.
Why Choose Beacon Builders?
At Beacon Builders, we specialize in:
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Premium residential and commercial developments
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Transparent investment opportunities
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Expert market insights and property evaluations
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Project management and legal support
We’re not just developers — we’re your real estate partners.
