ISLAMABAD (Dunya News) - Pakistan's government has proposed reducing withholding tax on property purchases and abolishing capital value tax on foreign assets as part of the federal budget for fiscal year 2026-27.
Under the budget proposals, the withholding tax on property purchases for tax filers would be reduced from 2.5% to 1.25%, aiming to provide relief to investors and stimulate activity in the real estate sector.
Presenting the budget, Finance Minister Muhammad Aurangzeb also announced a proposal to eliminate capital value tax on foreign assets.
The finance minister said the tax had been discouraging taxpayers from declaring overseas assets and that its removal would encourage greater compliance and transparency.
The proposed measures are part of the government's broader efforts to reform the tax system and improve documentation of the economy.