From The Express Tribune · Shahbaz Rana · · 1m 10s
Realty sector gets Rs34b tax relief
Real estate tax cuts boost sector by Rs34b as salaried class pays 360% more.
In brief
Real estate tax cuts boost sector by Rs34b as salaried class pays 360% more. The government's 50% real estate tax cut reduced sector contributions by Rs25.4bn in four months, while salaried class tax payments rose 360% to Rs193bn. Originally reported by The Express Tribune.
Real estate tax cuts
The government cut real estate income taxes by half in fiscal year 2026.
Real estate tax contribution
Real estate sector paid Rs42 billion in withholding taxes during July-October 2026.
Tax relief impact
Real estate tax collection dropped 48% from Rs52.7 billion to Rs27.3 billion.
Salaried class tax rise
Salaried class paid Rs193 billion in income tax, a 360% increase from last year.
IMF program details
IMF endorsed 50% real estate tax cut and fixed tax scheme for retailers in June 2026.
Tax gap widening
Tax gap between salaried class and real estate sector increased 360% in four months.
Retailer tax situation
Retailers paid Rs16.5 billion in income tax, up 8% from last year.
Tax shortfall
FBR booked Rs95 billion tax shortfall for July-October 2026 period.
The takeaway
The government's 50% real estate tax cut reduced sector contributions by Rs25.4bn in four months, while salaried class tax payments rose 360% to Rs193bn.
