The federal government is gearing up to deliver significant relief to the real estate and construction sector in the forthcoming budget, with a series of tax incentives and regulatory changes under consideration.

In a move set to benefit overseas Pakistanis, the government has decided to abolish the federal excise duty (FED) on property transactions for non-resident citizens. The longstanding requirement for a no-objection certificate (NOC) to claim tax exemption on property purchases by overseas Pakistanis is also likely to be scrapped.

Officials say another proposal to eliminate the FED on all real estate transactions is on the table, with the Federal Board of Revenue (FBR) expected to issue a formal notification effective July 1. Changes to FED rates for late filers and non-filers are also being reviewed.

The government believes that removing the FED will help spur construction activity and boost tax revenues by encouraging growth in the sector.

Additionally, the upcoming budget is expected to include a revision of withholding tax rates on property transactions. There are also plans to require all builders and developers involved in real estate to be formally registered starting July 1.

These measures are part of a broader effort to stimulate investment, streamline regulations, and support the real estate and construction industries as key drivers of economic growth.