The government has approved a revised taxation framework under the Finance Bill 2026–27, introducing lower advance taxes on property transactions while simultaneously increasing taxes on banks and large corporate entities. The new changes will come into effect from July 1 with the start of the next fiscal year.

Under the updated regime, advance tax on real estate transactions has been reduced. Property sellers will now be charged 2.75% advance tax on the transaction value, while buyers will pay 1.25% tax based on fair market value.

At the same time, the government has increased tax rates for key sectors. From July 1, banking companies and the fertilizer sector will be taxed at 10% on income exceeding Rs. 150 million, while other corporate firms will face an 8% tax on income above Rs. 500 million.

The revised measures form part of broader fiscal adjustments aimed at restructuring revenue collection across different sectors of the economy.