Karachi, November 2, 2025 – The Federal Board of Revenue (FBR) has achieved a major milestone by collecting Rs237 billion in withholding income tax from property transactions during fiscal year 2024–25, reflecting a robust 19% year-on-year increase compared to Rs200 billion collected in FY2023–24.
According to the FBR’s annual tax collection report, the surge in revenue from the property sector underscores the effectiveness of recent policy reforms and enhanced compliance measures implemented under the Finance Act 2024.
The FBR collects withholding income tax on property purchases under Section 236K of the Income Tax Ordinance, 2001. Under this head, tax collection rose by 14% to Rs119 billion in FY2024–25, compared to Rs104 billion in the previous year. Similarly, the withholding tax on property sales under section 236C, surged by 23%, reaching Rs118 billion, up from Rs96 billion in FY2023–24.
Experts attribute this growth to the progressive tax slab structure introduced through the Finance Act 2024, which revised tax rates based on the value of the property. For individuals listed on the Active Taxpayers List (ATL), the rates now stand at 3% for properties valued up to Rs50 million, 3.5% for properties between Rs50–100 million, and 4% for properties exceeding Rs100 million.
Higher rates apply to late filers and non-filers, with tax rates going as high as 20% under specific categories. The move aims to encourage timely filing, enhance transparency in real estate transactions, and expand the tax base.
FBR officials noted that the new framework would continue distinguishing between timely filers, late filers, and non-filers to promote fairness and sustained tax compliance across Pakistan’s property market.