Govt Abolishes Tax on Long-Held Property Sales

The amended Finance Bill 2025–26 abolishes withholding tax on the sale of immovable property used as a personal residence for 15 years or more, effective July 1. The Federal Board of Revenue (FBR) has included the change on the National Assembly Finance Committee’s recommendation. The bill also incorporates Senate-proposed safeguards to prevent arrests in tax fraud cases without due process. A proposed 3 percent Federal Excise Duty (FED) on property transfers has also been withdrawn. The bill includes a new Energy Vehicles Adoption Levy on internal combustion engine vehicles. While hybrid vehicles are currently not excluded, the finance committee has urged the FBR to exempt them. The Energy Vehicles Adoption Levy is expected to generate Rs. 10 billion. A major customs amendment to end tax-free imports of courier parcels worth up to Rs. 5,000 has been reversed. From July 1, only gift parcels valued at Rs. 1,000 or less will be exempt. The FBR has separately reduced the de-minimis limit to Rs. 500 to curb under-invoicing abuses. A new clause blocks late and false ownership claims on confiscated goods. The Customs Department will issue regulations to protect importers facing clearance delays beyond their control. Penalties may be waived in such cases by customs collectors.