Property relief measures in budget 2026-27 widely hailed in KP

PESHAWAR, (APP - UrduPoint / Pakistan Point News - 12th Jun, 2026) The relief measures announced for Federal Government for promotion of property sector in the Federal Budget 2026-27 have been widely welcomed by citizens, investors, contractors, and stakeholders associated with the construction industry across Khyber Pakhtunkhwa.

Industry representatives believed that the proposed tax reductions will revive real-estate activity, encourage new investments, and generate employment opportunities in allied sectors.

Talking to APP, contractors Wisal Khan and Irshad Khan of Nowshera said that the government's decision to provide tax relief to the property sector reflects its commitment to promoting economic growth and supporting one of the country's most important industries.

They explained that under the proposed budget, the withholding tax on the purchase of property by tax filers is set to be reduced from 2.5 percent to 1.5 percent.

Similarly, the tax on property sales is proposed to be cut from 5.5 percent to 2.75 percent. These measures have been included in the federal budget with a total outlay of Rs18.771 trillion.

According to the contractors, the reduction in taxes will lower the cost of property transactions and make investment in real estate more attractive for both individuals and businesses.

They said that investors often consider taxation levels before making decisions, and the proposed cuts are likely to increase confidence in the market.

The stakeholders further observed that the construction sector plays a vital role in the national economy due to its strong linkages with more than 40 allied industries, including cement, steel, bricks, paint, ceramics, electrical equipment, and transportation.

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An increase in construction activity, they said, would stimulate demand across these sectors and contribute to broader economic growth.

Wisal Khan pointed out that the construction industry had already witnessed significant expansion following the housing initiatives introduced by Prime Minister Shehbaz Sharif, particularly programs aimed at enabling low-income and underprivileged families to own homes.

He said these initiatives created fresh opportunities for builders, contractors, laborers, and suppliers of construction materials.

He expressed confidence that the latest tax relief measures would further strengthen the momentum in the housing and construction sectors. Increased investment, he said, would not only accelerate development projects but also create thousands of jobs for skilled and unskilled workers.

Economic observers believed that a more active property market could help improve business confidence and attract domestic investment. However, they also emphasize the importance of effective implementation and transparent regulations to ensure that the benefits reach genuine investors and home buyers.

Overall, the proposed property-sector incentives have been received positively in Khyber Pakhtunkhwa, with industry representatives viewing them as a significant step toward revitalizing the real-estate market, promoting construction activity, and supporting economic development across the country.