Karachi, March 25, 2026 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has proposed the introduction of an additional residential property tax in the upcoming federal budget 2026-27, aiming to address imbalances in Pakistan’s housing market.
In its budget recommendations submitted to the Tax Policy Office, ICMAP highlighted growing concerns over multiple-property ownership, speculative investments, and rising urban real estate prices. To counter these challenges, the institute has suggested imposing a 2% tax on additional residential properties valued at Rs20 million or above.
According to the proposal, the tax would apply to second homes and investment properties and would be collected from buyers at the time of property registration. However, first-time homebuyers and individuals purchasing primary residences would be fully exempt from this levy.
ICMAP emphasized that buyers would be required to disclose ownership of any other residential properties, ensuring transparency and better documentation of real estate transactions. The measure is designed to promote fairness in taxation by ensuring that individuals owning multiple properties contribute proportionately.
The institute believes that such a tax could help curb speculative buying and discourage artificial inflation in property prices, particularly in major urban centers like Karachi, Lahore, and Islamabad.
ICMAP estimates that if annual transactions of additional residential properties above the Rs20 million threshold reach Rs500 billion, the proposed 2% tax could generate around Rs10 billion in revenue each year.
The institute further recommended that the revenue collected should be allocated toward housing development, urban infrastructure projects, and affordable housing schemes to improve access to housing and support sustainable urban growth.