Islamabad, January 21, 2026 – The Federal Board of Revenue (FBR) has recorded a significant 65% increase in tax collection from property sales during the first half (July–December) of fiscal year 2025-26 compared to the same period last year.
According to provisional data, the FBR collected Rs87.83 billion in advance tax on property sales and transfers, up from Rs53.35 billion in the corresponding period of FY25.
In December 2025 alone, tax collection surged by 59%, reaching Rs16.41 billion, compared to Rs10.35 billion in December 2024. The FBR collects withholding tax under Section 236C of the Income Tax Ordinance, 2001, applied at the time of sale or transfer of property.
The rates for the tax year 2025-26 have been structured to encourage compliance by rewarding Active Taxpayers List (ATL) individuals with lower rates, while imposing higher rates on non-ATL taxpayers to discourage evasion. Late filers are also charged at slightly higher rates than ATL taxpayers but lower than non-ATL individuals. The move is part of the government’s broader strategy to increase revenue, bring transparency to the real estate sector, and ensure proper documentation of high-value property transactions.
Withholding Tax Rates on Property Transfers – FY26
| Section | Description | ATL Rate | Non-ATL Rate | Late Filer Rate |
| 236C | Transfer of Property ≤ Rs. 50m | 4.50% | 11.50% | 7.50% |
| 236C | Transfer of Property > Rs. 50m ≤ Rs. 100m | 5.00% | 11.50% | 8.50% |
| 236C | Transfer of Property > Rs. 100m | 5.50% | 11.50% | 9.50% |
Officials emphasized that the revised tax framework is aimed at enhancing compliance, encouraging accurate reporting of asset transfers, and ensuring that high-value real estate transactions contribute fairly to the national exchequer.