The federal Govt Approves major changes in advance tax rates on property transactions under the Finance Bill 2026–27. The revised structure also increases taxes on banks and large corporate sectors.
The new tax measures will come into effect from July 1. This marks the beginning of the new fiscal year.
Under the updated system, advance tax on property deals has been reduced. Sellers will now pay 2.75 percent tax on the total property value. Buyers will pay 1.25 percent tax based on fair market value.
Officials said the Govt Approves these changes to balance revenue needs while easing pressure on property transactions.
At the same time, the government has increased taxes on financial and corporate sectors. Banking companies and the fertilizer sector will now pay 10 percent tax on income exceeding Rs. 150 million.
Other corporate companies will be required to pay 8 percent tax on income above Rs. 500 million. These changes aim to increase revenue collection from high-earning sectors.
The Govt Approves revised taxation plan as part of broader fiscal reforms introduced in the new budget. Authorities say the adjustments are designed to strengthen economic stability and improve tax compliance.
The Finance Bill 2026–27 includes several measures targeting different sectors of the economy. The government says the goal is to create a more balanced taxation system.
Officials added that these changes will help improve revenue generation while supporting key economic activities such as real estate and industry.
The new tax structure reflects the government’s effort to adjust fiscal policy according to current economic conditions. It also aims to ensure fair contribution from all major sectors.
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The implementation of these changes from July 1 will mark a significant shift in Pakistan’s taxation framework.
