Pakistan's real estate sector is witnessing another significant policy shift as the government moves to clarify the Capital Gains Tax (CGT) on inherited property in Pakistan through the Finance Bill 2026-27. The National Assembly Standing Committee on Finance and Revenue has backed a revised CGT regime designed to establish a fairer method of taxing inherited property sales. The proposed changes are...
Capital Gains Tax Pakistan
The Lahore High Court (LHC) has provided significant relief to taxpayers in a landmark decision regarding the taxation of inherited property in Pakistan. In its ruling, the court clarified that there will be no super tax on inherited property sales in Pakistan when the capital gains tax rate is effectively zero percent. This judgment, related to no super tax on inherited property sales in Pakistan, has...
The Federal Board of Revenue (FBR) has recently intensified its focus on increasing tax collection through a stronger and more structured revenue drive. One of the most affected sectors in this policy shift is real estate, which has long been considered a key driver of investment and informal wealth creation in Pakistan. With new valuation updates, stricter documentation requirements, and tighter...
The real estate sector in Pakistan has received a significant update in 2026, as the FBR property valuation rates have been reduced across multiple areas. This move by the Federal Board of Revenue is expected to influence property tax Pakistan, investor behavior, and overall market activity. For anyone involved in real estate Pakistan, understanding this change is essential. Whether you are a...
The Islamabad High Court (IHC) recently delivered a landmark ruling confirming that property sale gains in Pakistan are taxable under the capital gains law. In this regard, the IHC rules property sale gains taxable under clear legal provisions, resolving long-standing confusion over whether profits from the sale of immovable property should be treated as business income or as capital gains under the...