Finance Bill 2025 Removes Tax on Long-Term Homes

Islamabad, June 24, 2025 — The amended Finance Bill (2025-26) will eliminate the withholding tax on immovable property sales for individuals who have resided personally in the property for 15 years or more, effective July 1, 2025, a news report confirms, following a recommendation by the National Assembly Standing Committee on Finance to simplify tax processes for long-term owners. The bill also overhauls federal tax laws, aligning with the Supreme Court’s Taj Company ruling to strengthen safeguards against tax fraud—enabling arrests and FIR registrations.

The Finance Bill proposes scrapping the Energy Vehicles Adoption Levy on hybrid vehicles, pending IMF consultation, with FBR Chairman noting its Rs10 billion revenue and current exemption status. A major customs law shift slashes the duty-free import limit for small courier/parcel from Rs5,000 to Rs1,000 from July 1, 2025, to curb misuse as gifts, though the committee rejected a blanket disallowance, setting a de-minimis limit of Rs500. New rules limit scrapping/mutilation of goods at ports to 10% of cargo for genuine requests, and the Customs Act may be amended to waive penalties for importers facing unavoidable delays.

Web context highlights Pakistan’s tax evasion issues (e.g., 70% informal economy, web ID: 0), while posts found on X show mixed views—some welcome relief, others fear revenue gaps. Critically, the narrative of “tax reform” may mask enforcement challenges—web data points to compliance gaps, and X sentiment suggests distrust in effective execution, hinting at potential loopholes.