The government has approved a reduction in advance tax rates on property buyers and sellers and the implementation of a new rate from July 1, according to reports on Tuesday.
According to the details, the new rates will take effect from July 1 under the Finance Bill for the upcoming fiscal year. Under the new law, advance tax on the sale of immovable property has been reduced.
Additionally, a tax of 2.75 per cent of the total transaction value will be collected from property sellers from July 1, according to the reports.
Property buyers will also be required to pay an advance tax of 1.25 per cent of the property’s fair market value.
From July 1, banking companies and firms in the fertiliser sector with income exceeding Rs150 million will have to pay a 10 per cent tax.
In addition to this, all other corporate companies that are earning more than Rs500 million will face an 8 per cent tax rate.
New income tax slabs for salaried class
The federal government has introduced new income tax slabs for salaried individuals and government employees as well.
It is also expected to take effect from July 1, 2026, after the approval of the Finance Bill 2026.
Under the new tax structure, people earning up to Rs600,000 per year will continue to be exempt from income tax.
Salaried individuals who are earning between Rs600,001 and Rs1.2 million annually will pay a reduced income tax rate of 1 per cent.
Those who are earning between Rs1.2 million and Rs2.2 million per year will pay a fixed tax of Rs6,000. This will be along with an 11 per cent tax on income above Rs1.2 million.
For people who are earning between Rs2.2 million and Rs3.2 million annually, the tax rate on additional income has been reduced from 23 per cent to 20 per cent.
They will pay a fixed tax of Rs116,000 plus 20 per cent on income exceeding Rs2.2 million.
