The National Assembly Standing Committee on Finance and Revenue on Thursday approved a proposal to impose capital gains tax on the sale of inherited properties and plots, as part of efforts to bring greater clarity and transparency to the taxation of inherited assets.

The proposal came under discussion during deliberations on the Finance Bill 2026. Under the proposed mechanism, the market value of a property at the time of the original owner’s death would be treated as its acquisition cost for tax purposes. Capital gains tax would then apply to any increase in value when the inherited asset is eventually sold.

Tax officials told the committee that if a property valued at Rs. 8 million at the time of inheritance is later sold for Rs. 10 million, the tax would be charged on the Rs. 2 million gain.

However, committee chairman Naveed Qamar suggested that the valuation should instead be determined from the date the ownership is formally transferred. The panel endorsed this recommendation.

FBR officials said the proposed measure is aimed at removing ambiguities surrounding inherited properties and creating a clear mechanism for taxing gains arising from their disposal.

The committee was also informed that inherited assets transferred through family settlement arrangements would receive legal protection under the proposed framework.

Separately, the panel approved a proposal to impose a 5 percent withholding tax on social media earnings received through banks and also endorsed mandatory electronic filing of income tax returns.