In a major development for the Pakistan real estate market, the federal government has relaxed property purchase restrictions for non-filers under the Federal Budget 2025‑26, following the directives of Prime Minister Shehbaz Sharif.

According to Finance Minister Senator Muhammad Aurangzeb, individuals who have not filed income tax returns (non-filers) can now legally invest in the following:

Residential property worth up to PKR 50 million

Commercial property or plots worth up to PKR 100 million

Vehicles valued up to PKR 7 million

This policy shift is expected to boost real estate investment in Lahore and across Pakistan, especially among overseas Pakistanis and local investors previously restricted due to tax status.

 

Income Tax & Pension Reforms for 2025-26

As part of broader tax relief measures, the government has introduced the following:

Reduced income tax for salaried individuals earning between PKR 600,000 to PKR 1.2 million from 2.5% to 1% only

No tax on pension commutation and gratuity

Pensions above PKR 10 million will be taxable

Senior citizens over 75 years will be completely exempted from income tax

 

Real Estate Capital Gains & Withholding Tax Reforms

For property investors and homeowners in Pakistan, the following reforms have been announced:

No capital gains tax on properties sold after 6 years of ownership (if purchased before July 1, 2024)

Withholding tax exemption for personally held property kept for 15 years or more

Point-of-sale (POS) tax remains at 4.5–6%, but is refundable upon filing tax returns

These changes are particularly relevant for long-term property buyers in Lahore, Islamabad, and Karachi who intend to hold or resell real estate in the future.

 

Revised Sales Tax on Solar Panels

In a positive move for solar energy adoption in Pakistan, the proposed 18% sales tax on imported solar panel components has been revised to just 10%, with only 46% of components affected. The final impact will result in only a 4.6% average increase in solar panel prices.

The government has also warned solar equipment dealers against hoarding or artificial inflation, promising strict regulatory enforcement.

 

FBR Enforcement Reforms

To address tax evasion while ensuring fair treatment, the government has updated FBR arrest policies:

Arrests on tax evasion over PKR 50 million will require:

Three prior notices

Verified evidence of intent

Approval by a 3-member FBR committee

Judicial presentation within 24 hours

 

Agriculture, SME & Housing Sector Initiatives

Key initiatives introduced to support economic growth include:

PKR 10 tax on each broiler chick to broaden the poultry tax net

Expansion of Benazir Income Support Programme from PKR 592 billion to PKR 716 billion

Collateral-free loans up to PKR 1 million for small farmers with up to 12.5 acres of land

Launch of digital warehouse receipts for better price access

20-year low-cost housing loans for low-income families

Rs 14 billion Women Inclusive Finance Programme, supported by ADB, to empower women entrepreneurs in Pakistan

Impact on Lahore Real Estate & Investment Opportunities

The relaxation on non-filer property purchase limits is a significant investment opportunity for buyers in Lahore's real estate market. At Dreams Marketing, we expect increased interest in:

Luxury apartments and homes under PKR 50 million

Commercial plots in DHA, Bahria Town, and Raiwind Road

Long-term investments in housing societies

If you're considering investing in Lahore real estate, now is the ideal time to capitalize on policy relaxations and tax exemptions.

 

For more updates on property trends, investment guides, and real estate news in Lahore, stay connected with Dreams Marketing, your trusted partner in Pakistan's real estate growth.