In the budget, the following measures have been proposed which will affect the Withholding Tax (WHT) rate imposed on property transfer cases:
- The rate of WHT levied on the purchase of property has been reduced from 2% to 1% of its total value.
- Previously, the WHT was only imposed on the purchase of property valued higher than PKR 4 million. This ceiling has been abolished. WHT will now be imposed on all properties; irrespective of their value.
- Previously, no WHT was collected on the sale of property if it was sold after three years of purchase. This time limit has now been raised to five years. Any property sold within five years of purchase will be taxed at a rate of 1% of its total value.