Govt Abolishes FED on Property Transactions, Boosting Construction Sector

The federal government has officially abolished the Federal Excise Duty (FED) on the sale and purchase of property — a move hailed by the construction industry as a much-needed relief.

Hasan Bakshi, Chairman of the Association of Builders and Developers of Pakistan (ABAD), welcomed the decision and thanked the government for supporting the construction sector. He described the step as a boost for the industry that would help drive economic activity and generate jobs.

Bakshi also urged the government to offer further tax relief by reducing the levies under Sections 236C and 236K of the Income Tax Ordinance, 2001. In addition, he called for a review of the tax burden introduced under Section 7E related to real estate.

He emphasised that eliminating the FED will not only encourage investment in construction but also contribute to employment and long-term economic stability.