LATEST NEWS
FBR PROPOSED TAX 2026 - 2027
Last Updated: June 2026 — Proposed rates from Finance Bill 2026. These rates are NOT yet effective. Read the important SRO notice below before making any decisions.
🚨 Critical Notice — Read Before Anything Else
The Finance Bill 2026 proposes new reduced FBR tax rates effective 1 July 2026. However:
- These rates are NOT yet law. They are a government budget proposal only.
- For these rates to become effective — FBR must issue an official SRO after 30 June 2026.
- If FBR does NOT issue an SRO after 30 June — the current 2025-26 rates continue to apply.
- If FBR issues an SRO but mentions different rates — only the SRO rate applies, not this budget proposal.
- Always verify with your tax consultant or FBR after 30 June 2026 before any property transfer.
⚠️ Housing Associates does NOT take responsibility for any transaction based on proposed rates. Wait for official FBR SRO confirmation before relying on these figures.
If implemented — this budget cuts property transaction taxes roughly in half for all buyers and sellers. The late-filer category is abolished. Non-filer penalty is dramatically reduced. This is excellent news for the Pakistani real estate market — subject to official FBR SRO confirmation.
1. What is Changing — Finance Bill 2026 Summary
The Finance Bill 2026 (FY2026-27) proposes the following major changes to property transaction taxes in Pakistan — effective 1 July 2026, if FBR issues official SRO:
| Tax Measure | Current Rate (2025-26) | Proposed Rate (2026-27)* |
|---|---|---|
| Buyer Tax (Sec. 236K) | 1.5% | Flat 1.25% of FMV |
| Seller Tax (Sec. 236C) | 4.5% | Flat 2.75% of gross consideration |
| Late Filer Category | Buyer 4.5% / Seller 7.5% | ABOLISHED — category removed |
| Non-Filer Penalty | Buyer 10.5% / Seller 11.5% | 100% surcharge on base rate (double) |
| Section 7E — Deemed Income | 1% of FMV annually | ABOLISHED |
* Note — Drafting Discrepancy: The Finance Bill Salient Features memorandum states buyer rate as 1.5%, but the operative First Schedule text states 1.25%. The operative text governs unless corrected before enactment. We have used 1.25% in our tables below as that is the operative figure — but this may change.
📊 New Tax Categories Under Proposed Finance Bill 2026
Filer Buyer
1.25%
Flat rate — no slabs
Filer Seller
2.75%
Flat rate — no slabs
Non-Filer Buyer
2.50%
1.25% × 2 (100% surcharge)
Non-Filer Seller
5.50%
2.75% × 2 (100% surcharge)
Late Filer
N/A
Category abolished
2. 🏗️ Residential Plots — Current vs Proposed Tax Comparison
FBR Valuations remain unchanged. Only tax rates change. All amounts in PKR.
Proposed rates only apply AFTER FBR issues official SRO post 30 June 2026.
📐 125 Sq Yard Plot — FBR Valuation: PKR 12,37,500
| Category | Current Rate 2025-26 |
Current Tax (PKR) 2025-26 |
Proposed Rate 2026-27* |
Proposed Tax (PKR) 2026-27* |
Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 18,563 | 1.25% | 15,469 | 3,094 |
| Seller — Filer | 4.5% | 55,688 | 2.75% | 34,031 | 21,657 |
| Buyer — Non-Filer | 10.5% | 1,29,938 | 2.5% | 30,938 | 99,000 |
| Seller — Non-Filer | 11.5% | 1,42,313 | 5.5% | 68,063 | 74,250 |
📐 250 Sq Yard Plot — FBR Valuation: PKR 24,75,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 37,125 | 1.25% | 30,938 | 6,187 |
| Seller — Filer | 4.5% | 1,11,375 | 2.75% | 68,063 | 43,312 |
| Buyer — Non-Filer | 10.5% | 2,59,875 | 2.5% | 61,875 | 1,98,000 |
| Seller — Non-Filer | 11.5% | 2,84,625 | 5.5% | 1,36,125 | 1,48,500 |
📐 500 Sq Yard Plot — FBR Valuation: PKR 49,50,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 74,250 | 1.25% | 61,875 | 12,375 |
| Seller — Filer | 4.5% | 2,22,750 | 2.75% | 1,36,125 | 86,625 |
| Buyer — Non-Filer | 10.5% | 5,19,750 | 2.5% | 1,23,750 | 3,96,000 |
| Seller — Non-Filer | 11.5% | 5,69,250 | 5.5% | 2,72,250 | 2,97,000 |
📐 1000 Sq Yard Plot — FBR Valuation: PKR 99,00,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 1,48,500 | 1.25% | 1,23,750 | 24,750 |
| Seller — Filer | 4.5% | 4,45,500 | 2.75% | 2,72,250 | 1,73,250 |
| Buyer — Non-Filer | 10.5% | 10,39,500 | 2.5% | 2,47,500 | 7,92,000 |
| Seller — Non-Filer | 11.5% | 11,38,500 | 5.5% | 5,44,500 | 5,94,000 |
📐 2000 Sq Yard Plot — FBR Valuation: PKR 1,98,00,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 2,97,000 | 1.25% | 2,47,500 | 49,500 |
| Seller — Filer | 4.5% | 8,91,000 | 2.75% | 5,44,500 | 3,46,500 |
| Buyer — Non-Filer | 10.5% | 20,79,000 | 2.5% | 4,95,000 | 15,84,000 |
| Seller — Non-Filer | 11.5% | 22,77,000 | 5.5% | 10,89,000 | 11,88,000 |
3. 🏡 Bahria Villas — Current vs Proposed Tax Comparison
FBR Valuations for villas remain unchanged. Only tax rates change under proposed Finance Bill 2026.
🏡 Iqbal Villa — 150 Sq Yard | FBR Valuation: PKR 50,62,500
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 75,938 | 1.25% | 63,281 | 12,657 |
| Seller — Filer | 4.5% | 2,27,813 | 2.75% | 1,39,219 | 88,594 |
| Buyer — Non-Filer | 10.5% | 5,31,563 | 2.5% | 126,563 | 405,000 |
| Seller — Non-Filer | 11.5% | 5,82,188 | 5.5% | 278,438 | 303,750 |
🏡 Quaid Villa / Precinct 10A — 200 Sq Yard | FBR Valuation: PKR 67,50,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 1,01,250 | 1.25% | 84,375 | 16,875 |
| Seller — Filer | 4.5% | 3,03,750 | 2.75% | 185,625 | 118,125 |
| Buyer — Non-Filer | 10.5% | 7,08,750 | 2.5% | 168,750 | 540,000 |
| Seller — Non-Filer | 11.5% | 7,76,250 | 5.5% | 371,250 | 405,000 |
🏡 Sportscity Villa — 350 Sq Yard | FBR Valuation: PKR 1,02,37,500
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 153,563 | 1.25% | 1,27,969 | 25,594 |
| Seller — Filer | 4.5% | 460,688 | 2.75% | 281,531 | 179,157 |
| Buyer — Non-Filer | 10.5% | 1,074,938 | 2.5% | 255,938 | 819,000 |
| Seller — Non-Filer | 11.5% | 1,177,313 | 5.5% | 563,063 | 614,250 |
🏡 Paradise Villa — 500 Sq Yard | FBR Valuation: PKR 1,46,25,000
| Category | Current Rate | Current Tax (PKR) | Proposed Rate* | Proposed Tax (PKR)* | Saving (PKR) |
|---|---|---|---|---|---|
| Buyer — Filer | 1.5% | 219,375 | 1.25% | 182,813 | 36,562 |
| Seller — Filer | 4.5% | 658,125 | 2.75% | 402,188 | 255,937 |
| Buyer — Non-Filer | 10.5% | 1,535,625 | 2.5% | 365,625 | 1,170,000 |
| Seller — Non-Filer | 11.5% | 1,681,875 | 5.5% | 804,375 | 877,500 |
4. What This Means — The Biggest Winners
💰 How Much Will Each Category Save — If Implemented
| Category | Change | Verdict |
|---|---|---|
| Filer Seller | 4.5% → 2.75% — savings of ~38% | ✅ Good saving — filers benefit |
| Filer Buyer | 1.5% → 1.25% — modest saving | ✅ Small saving — already lowest |
| Late Filer (any) | Category abolished — treated as filer | ✅ Huge benefit — biggest winner |
| Non-Filer Buyer | 10.5% → 2.5% — massive reduction | ✅ Enormous saving — transformed |
| Non-Filer Seller | 11.5% → 5.5% — significant reduction | ✅ Big saving — major relief |
Most Important: Late filers benefit the most — their elevated rate category is completely abolished. Non-filer buyers see the most dramatic change: from 10.5% down to just 2.5%. This is a near-total removal of the non-filer property transaction penalty for buyers.
5. Important — SRO Requirement Explained Simply
❌ What Happens if NO SRO After 30 June
- Finance Bill 2026 proposed rates do NOT apply
- Current 2025-26 rates continue unchanged
- Buyer filer still 1.5%, seller filer still 4.5%
- Non-filer rates stay at 10.5% / 11.5%
- Late filer category remains active
✅ What Happens if SRO IS Issued After 30 June
- SRO is the official legal notification
- Rates in the SRO become the new law
- If SRO matches Finance Bill — these tables apply
- If SRO has different rates — only SRO rates apply
- Always read the SRO text — not just news reports
💡 Housing Associates Advice — What to Do Right Now
- If your property transfer is due before 30 June 2026 — use current tax rates in our existing FBR Tax Guide.
- If your transfer is after 30 June 2026 — wait for official FBR SRO notification before calculating tax.
- Never rely on news headlines or WhatsApp forwards about new tax rates — only the official SRO text is legally binding.
- Contact Housing Associates or a registered tax consultant after 30 June to confirm which rates apply to your specific transaction.
6. Related Guides
7. FAQ
Q1: Are the proposed Finance Bill 2026 tax rates applicable from 1 July 2026?
Not automatically. The Finance Bill 2026 proposes these rates effective 1 July 2026 — but for them to become law, FBR must issue an official SRO after 30 June 2026. If no SRO is issued, the current 2025-26 rates continue. If an SRO is issued with different rates than the Finance Bill, the SRO rates apply. Always wait for and verify the official SRO text.
Q2: What happened to the Late Filer category under Finance Bill 2026?
The late filer elevated rate category (Tenth Schedule Rule 1A) is proposed to be abolished entirely. If implemented — there will be only two categories: Filer (on Active Taxpayers List) and Non-Filer (not on ATL). Late filers who were paying 4.5% buyer tax would move to the standard filer rate of 1.25%. This is one of the most significant proposed changes.
Q3: What is the proposed buyer tax rate under Finance Bill 2026?
The proposed buyer tax (Section 236K) is a flat 1.25% of fair market value — replacing the current 1.5%–10.5% slab structure. However there is a noted drafting discrepancy — the Salient Features memorandum states 1.5% while the operative First Schedule text states 1.25%. The operative text governs unless corrected. Non-filers (not on ATL) still face a 100% surcharge — making their effective rate 2.5%.
Q4: Do FBR valuations change under the new Finance Bill?
No. The FBR property valuations for all plots and villas remain unchanged. Only the tax rates applied to those valuations change under the Finance Bill 2026 proposal. The same valuation tables currently used (PKR 12,37,500 for 125 Sq Yd plots, PKR 67,50,000 for Quaid Villas, etc.) continue to apply — just with lower tax percentages if the SRO is issued.
🏡 Planning a Property Transfer After 30 June 2026?
Housing Associates will update our clients immediately once the official FBR SRO is issued after 30 June 2026. We will publish the confirmed new tax rates as soon as they are officially notified. Contact us for guidance on your specific property transfer.
Disclaimer: All proposed tax rates in this blog are from the Finance Bill 2026 as presented to the National Assembly and are for discussion and awareness purposes only. These rates are NOT yet law. They take effect only upon official FBR SRO issuance after 30 June 2026. If no SRO is issued, or if the SRO contains different rates, those differences take legal precedence. FBR valuations used are from the current official BTK valuation table and may be subject to revision. This blog does not constitute legal or tax advice. Always consult a registered tax consultant before any property transaction. Source: Finance Bill 2026 as laid before the National Assembly. Housing Associates is not liable for any decisions made based on this content.
