Finance Minister Muhammad Aurangzeb on Friday announced a series of tax relief measures for the real estate sector, exporters, information technology firms and overseas asset holders as part of the federal budget for fiscal year 2026-27.

Presenting the budget in the National Assembly, the minister said the government was reducing several withholding and advance tax rates to stimulate economic activity, support exports and encourage investment.

Under the proposed measures, the withholding tax on property purchases by tax filers has been reduced from 2.5 per cent to 1.25 per cent.

Similarly, the withholding tax on property sales by filers has been cut from 5.5 per cent to 2.75 per cent, providing significant relief to the real estate sector.

In a move aimed at supporting the country’s growing technology industry, Aurangzeb announced the extension of the concessional 0.25 per cent tax rate on IT export income until 2029.

The government has also reduced advance income tax on exports from 2 per cent to 1.25 per cent to improve the competitiveness of Pakistani exporters in international markets.

To facilitate overseas transactions, the finance minister said the tax on foreign spending through credit and debit cards had been reduced from 5 per cent to 0.5 per cent.

Aurangzeb further announced the abolition of capital value tax on foreign assets, describing the measure as part of efforts to rationalise the tax regime and encourage investment.

The minister also unveiled a fixed tax scheme for small retailers and shopkeepers, saying the initiative would simplify tax compliance and broaden documentation of the economy.

The measures form part of the government’s broader strategy to promote investment, boost exports and support economic growth while maintaining fiscal stability.