Withholding tax collection from the sale of immovable property recorded a substantial increase during fiscal year 2025–26. According to the FBR data reported in the document, collection under Section 236C of the Income Tax Ordinance, 2001 increased by 56.9%, representing an additional Rs. 66.7 billion compared with the preceding fiscal year.
The increase is particularly significant because property transactions were among the major contributors to withholding tax collections alongside contracts, imports, dividends and salaries. The reported data also showed a 22.3% increase in withholding tax collection from contracts, while collections associated with imports, dividends and salaries also increased during the year.
The figures demonstrate the growing importance of transaction-based withholding in Pakistan’s revenue collection framework. For sellers of immovable property, withholding at the transaction stage is therefore becoming an increasingly material tax consideration, making accurate tax status, transaction values and proper reconciliation of taxes deducted at source important when preparing the annual income tax return.