Tax revenue from <a href="https://industrymovement.com/souq7-wins-real-estate-industrys-most-prestigious-award-in-france/" title="Souq7 wins real estate industry's most prestigious award in France”>real estate sector falls 45%
UA.NEWS08
November
2026
01:45
Revenue from withholding taxes paid by the real estate sector in July–October of the current fiscal year amounted to 42 billion rupees. According to preliminary data, this is 34 billion rupees, or 45%, less than in the same period of the previous year, The Express Tribune reports.
The decline came after the government halved the advance tax on the purchase and sale of real estate. The publication estimates the amount of tax relief for the industry resulting from this decision at 34 billion rupees in the current fiscal year.
Rates for property transactions
The tax on real estate sales was changed from three rates to a single rate of 2.75%, down from 5.5%. For property purchases, the rate was reduced from 2.5% to 1.25%.
Over four months, advance tax revenue from real estate sales decreased from 52.7 billion to 27.3 billion rupees — by 25.4 billion rupees, or 48%. Revenue from property purchases fell from 23.1 billion to 14.7 billion rupees, or by 8.4 billion rupees, or 37%.
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Real estate sector experts cited by the publication said that the number of transactions and property values had increased after the policy on speculative investments was revised.
Comparison with taxes paid by salaried employees
Salaried employees paid about 193 billion rupees in income tax over the same period. This is about 14 billion rupees more than the 179 billion rupees collected during four months of the previous fiscal year, and 151 billion rupees more than the real estate sector’s figure.
Tax collection from professional services increased by 17%, to 111 billion rupees. Some salaried employees are also taxed under this category.
Total withholding taxes paid by wholesale and retail traders amounted to 24.7 billion rupees, which is 2.5% more year on year. The tax authority also recorded a tax revenue shortfall of 95 billion rupees in July–October: revenue grew by 6.5%.
