Prime Minister Shahbaz for the approval of the Housing Sector Tax Reforms and Planning Plan (Islamabad: Real estate and residence reforms are expected on February 6Jes
Prime Minister Shahbaz Sharif On February 6, 2025, a major policy package is ready to be approved, which aims to improve Pakistan’s residence and real estate sector. The proposed reforms made by the Housing Sector Task Force focus on the policy standard to promote tax rationality, financing, financing, and investment and economic growth.
The key foxes of the reform package
The next meeting under the chairmanship of Prime Minister Shahbaz will review the key challenges in the housing sector and finalize the growth framework to attract investment. Recommendations include:
- Eliminate Section 7E of the Income Tax Ordinance to smooth property transactions.
- Sub Section 2A of Section 236C, exempt the requirement of 7E declarations and commissioner approval.
- To encourage investment in affordable housing, tax is exempt from property worth up to Rs 10 million.
- Implement the NADRA verification system online for non -resident property buyers.
- Standing and arguing the duties of stamps in Islamabad, provinces, and ICT.
- Eliminating Capital Value Tax (CVT) in Islamabad to remove financial barriers.
- Ensure uniform tax rates for both filers and late filers to eliminate differences.
- Excuse the requirements of wealth regarding wealth for investment of up to Rs 50 million in construction and construction.
- Review property prices every three years to reflect market rates.
- Introduction to tax exemption on low -cost housing, government plots, and for the first time domestic buyers’ transaction transaction tax.
Small -term steps to resurrect the property of the property
To improve investors’ confidence in the real estate sector and encourage development, the Task Force has also recommended several short -term measures.
- Reducing the policy rate in one digit to encourage real estate financing.
- My Pakistan My Home (MPMG) Scheme is resumed to restore the developer and buyer confidence.
- Repeating markup subsidy on LOW low -cost housing loan to make home ownership more accessible.
- Launching awareness campaigns and financial literacy programs to inform buyers of investment opportunities.
- In combination with real estate developers, introduce mortgage financing options with 5, 10, and 20 years fixed terms.
Why these reforms are important to Pakistan’s residential sector
The real estate and construction industry is an important economic growth driver in Pakistan, which aid in employment production and financial stability. However, the lack of increasing taxes, contradictory policies, and the lack of financing powers have hindered investment and slowed the property transactions.
- Due to the increase in taxes, the property has decreased by more than 50 % of the immovable transactions.
- High transactions costs are causing investors to find alternatives to foreign markets.
- Developers face financial challenges, which delays housing projects.
With these reforms, the purpose of the government is to build a more transparent and stable property market, attract both local and foreign investors, and provide cheap housing powers for the public.
Result: A game changer for Pakistan’s real estate market
The approval of Prime Minister Shahbaz’s reform package indicates an important step in shaping Pakistan’s residential sector. If effectively implemented, the proposed tax reform and financing measures will increase investment, promote homemade building, and revive the real estate market.
Since the government is preparing to abolish these reforms, the role of the National Tax Council and the provincial officials will be necessary to ensure their successful execution. With the process, more updates will be available in the coming weeks.
