ISLAMABAD: Reduction of stamp duty on immovable property in Islamabad from four per cent to one per cent is now part of the Finance bill 2025, which is set to be passed on June 26 by the parliament.

The federal government after pointing out significant decrease in sale and purchase in the capital during the last four years decided to reduce the stamp duty.

“The stamp duty shall be levied at one per cent of the value of the immovable property [in Islamabad Capital Territory] for filers of tax return and two per cent for non-filers of tax return as defined under the Income Tax Ordinance, 2001 (XLIX of 2001),” read the finance bill.

Data collected by Dawn shows that during the last four years, sale and purchase of property and land saw a significant decline in Islamabad.

Sources said various taxes were significantly increased over the past three years, which led to a slowdown in real estate transactions.

“We are hopeful that after reduction in stamp duty the real estate sector will see an improvement,” said an official of ICT revenue department posted at registry office.

The ICT data shows that in 2021, the department registered 40,890 Intiqal (transfer deeds) covering 26,629 kanals. In 2022, after the tax hike, 36,200 transfer deeds were registered, covering 26,305 kanals.

In 2023, the number dropped further, with 26,669 transfer deeds recorded for 13,532 kanals.

Last year, only 20,726 such deeds were registered, involving 9,912 kanals.

The sources said currently, the tax ratio on property sale and purchase stood around 11 per cent for filers even for small plots measuring just a few marlas.

For the transfer of commercial property, filers have to pay around 14 per cent taxes, including stamp duty.

Non-filers, meanwhile, are charged approximately 20 per cent in various taxes on the total cost of land and property.

Sources said there was also a chance that one per cent registration fee would also be abolished in the next few days.

Published in Dawn, June 12th, 2025