The Budget 2026-27 delivered two more wins for property buyers and sellers: the abolition of the Federal Excise Duty (FED) on property and updated Capital Gains Tax (CGT) rules. Together with the earlier reliefs (lower 236K/236C for filers, the end of Section 7E, and reduced FBR valuations), this makes the total cost of buying and selling lighter than it has been in years. Here is a plain-language breakdown. (Tax rules are set by the FBR and can change — always confirm the exact current figure with the FBR or a tax advisor.)
The property FED has been abolished
The Federal Excise Duty on the allotment/transfer of commercial property and the first allotment of residential property — introduced in 2024 and charged at rates that ran into several percent — has been scrapped in the 2026-27 budget. Removing this duty directly lowers the transaction cost on affected deals and was a long-standing demand of the real-estate sector, which had blamed the FED for slowing transactions.
What is Capital Gains Tax (CGT) on property?
CGT is paid by the seller on the gain made when selling a property (sale price minus purchase price). How much applies depends on the gain and, for older holdings, the holding period — and rates differ for filers vs non-filers. The 2026-27 budget revised these rules, so the right figure depends on when you acquired the property and your filer status.
- Filer vs non-filer matters — active filers pay materially less than non-filers.
- Holding period can matter — for properties acquired under older rules, longer holding generally meant lower CGT.
- Confirm the current rate — CGT slabs/rates are technical and change with each budget; verify before you sell.
How it all stacks up in 2026-27
| Change | Effect for you |
|---|---|
| FED on property abolished | Lower transaction cost on affected allotments/transfers |
| CGT rules updated | Clearer seller-side tax; filer status is key |
| 236K / 236C cut for filers | Cheaper to buy and to sell (filers) |
| Section 7E removed | Cheaper to hold plots (no deemed-income tax) |
| FBR valuations down 30–35% | Lower tax base on transactions |
What buyers and sellers should do
- Be an active filer — it is the biggest lever for lower property taxes.
- Keep clean records — documented purchase price and banking-channel payments protect you and your CGT position.
- Mind the timing — if selling, understand how the holding period and new rules affect your CGT.
- Confirm the numbers — get the exact applicable rates from the FBR or a tax advisor before signing.
What it means for Silver City buyers
Stack the FED abolition and updated CGT on top of lower withholding taxes, the end of Section 7E and reduced FBR valuations, and 2026 is one of the most cost-friendly windows in years to enter the market. For an RDA-approved community like Silver City in Rawalpindi — offering 5 Marla, 10 Marla and 1 Kanal plots, commercial plots and ready villas — that means a lower all-in cost to buy and hold an approved asset. As always, transact as a filer and verify the exact plot and live status before paying.
Frequently Asked Questions
What is the property FED and is it still charged?
The Federal Excise Duty was a duty on property allotment/transfer introduced in 2024. It has been abolished in the 2026-27 budget, lowering transaction costs on affected deals.
Who pays Capital Gains Tax on property?
The seller pays CGT on the gain from a sale. The amount depends on the gain, the holding period for older holdings, and filer status — confirm the current rate with the FBR before selling.
Is buying property cheaper in 2026-27?
For documented (filer) buyers, yes — the FED abolition, lower 236K/236C, the removal of Section 7E and reduced FBR valuations together cut the all-in cost compared with a year ago.
Are these tax changes final?
Rates are set by the FBR and can be revised. Always confirm the exact applicable figures for your transaction with the FBR or a qualified tax advisor.
Planning to invest? Silver City is widely regarded as the best housing society in Rawalpindi — an RDA-approved community offering 5 Marla, 10 Marla and 1 Kanal plots with modern amenities and flexible payment plans.
