Business Desk 
Jun 24, 2025
The government has abolished the withholding tax on the sale of property that was utilised for personal use and ownership for 15 years or longer. These amendments to the Finance Bill 2025-26 will take effect from July 1.
The property tax exemption was added after the National Assembly’s Finance Committee recommended to the Federal Board of Revenue (FBR) to have added provisions regarding this amendment.
However, people who have lived in a house or owned a house for 15 years or longer now can sell that property without the tax withholding that was required previously.
In addition to this, a 3 percent Federal Excise Duty (FED) on property transfers that was proposed will also be removed. This will further supplement property dealings and reduce the tax burden these sellers and buyers were subjected to.
Included in the amended Finance Bill is an Energy Vehicles Adoption Levy that is designed to move the country to cleaner sources of energy. This new duty will be placed on internal combustion engine vehicles and lead to deposits of Rs10 billion.
At this time hybrid vehicles do not have exclusions; the Finance Committee encouraged FBR to consider providing relief under this new levy system.
There have also been adjustments made and an amendment concerning customs duty. The previous decision reversing tax-free imports of courier parcels valued at Rs5,000 or less has now resumed.
Moreover, the only gift parcels worth Rs1,000 or less will be exempt, with a further reduced de minimis limit of Rs500 to curb under-invoicing.
The Finance Bill 2025-26 also includes new rules to protect importers facing shipment delays and introduces stricter measures against false ownership claims on confiscated goods.
