New Property Tax in Punjab 2025
New Property Tax in Punjab: Previously, the government removed the tax on immovable property that had been in use for 15 years or more through an amendment in the Federal Budget 2025-26. 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 sector in different cities in Lahore. Let’s see what the changes have to offer us in the blog.
New Property Tax in Punjab
The Punjab Government has introduced a new property tax in Punjab on property sales. The overview below highlights the changes the government has 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 New Property Tax in Punjab
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 it will increase these taxes to maintain the revenue it generates from the real estate sector.
Conclusion
To sum up, the real estate market is definitely going through high and low. Previously, we had noted that after the Federal Budget 2025-26, the government abolished taxes on properties held for 15 years. But now there is new property tax in Punjab, also 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.
Also read: Pakistan Federal Budget 2025-26: Key Highlights & New Taxes