Previously, the amendment in the Finance Bill 2025 to 2026 removed the tax on immovable property that has been in use for almost 15 years or more. This news proved to be beneficial for those thinking of selling the property. But we have some other news for you. The Punjab government has implemented major changes in the real estate world in different cities in Lahore. Let’s see what the changes have to offer us in the blog.
Increased Tax Rates on Property in Punjab
The Punjab Government has announced an increase in the taxes for the sale of property. The following is an overview of the changes made in the real estate market:
- 5% DC increased for property transfers
- 4.5% federal tax on the sale of property paid by the seller
- 1.5% withholding tax upon purchase paid by the buyer
Impact of Increased Tax Rates on the Market
These increased property tax rates in Punjab are likely to have an impact on the market. Let’s have a look at some of them below:
- The increased taxes are going to be a source of economic burden for both buyers and sellers.
- People with a specific budget will have to rethink before selling the property.
- Property market activities might slow down as few people will be considering selling or purchasing the property.
Considering all these disadvantages, the government announced that these taxes will be increased to maintain the revenues generated in the real estate sector.
Conclusion
To sum up, the real estate market is definitely going through high and low. Previously, we had explored that the taxes were abolished on the properties owned for 15 years. But now there are new property taxes in Punjab, such as DC, federal tax for sellers, and withholding tax on buyers. However, before you think of either selling the property or purchasing, make sure to have a look at your budget first.
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