ABAD welcomes scraping of FED on property sale, purchase

The federal government has decided to abolish the Federal Excise Duty (FED) on property sale and purchase — a move widely welcomed by the construction sector.

Chairman of the Association of Builders and Developers of Pakistan (ABAD), Hasan Bakshi, expressed gratitude to the government for removing the FED, calling it a positive step for the country’s construction industry.

He urged further relief, calling for reductions in taxes under Sections 236C and 236K of the Income Tax Ordinance, 2001, and proposed easing tax measures imposed under Section 7E on real estate.

Bakshi said that eliminating FED on property sales would invigorate the construction sector and help generate employment.

He further highlighted the need for effective policies to support and sustain the country’s construction-driven economic growth.

Commenting on broader economic matters, ABAD Chairman Hasan Bakshi said the recommendations of the task force for economic stability were crucial.

He stressed that consistent investment will only be possible if Pakistan remains competitive in the regional economic race.

Earlier, Pakistan ‘linked’ tax relief for the salaried class with the consent of the International Monetary Fund (IMF) in the upcoming FY2025-26 budget.

As per details, as preparations for the upcoming federal budget are underway, high-level discussions are taking place to explore avenues of tax relief, particularly for the salaried class and real estate sector.