Real estate, construction sectors welcome tax relief in budget

LAHORE, Jun 12 (APP): Stakeholders from the real estate and construction sectors have warmly welcomed the tax relief measures announced in the Federal Budget 2026-27, describing the budget as a positive step towards reviving business activity and encouraging investment in the property market.

Representatives of the sector said that the reduction in taxes would help restore confidence among investors, builders and property dealers who had been struggling with a prolonged slowdown in business activities.

Speaking to APP on Friday, real estate professional Hassan Ali said the sector had been facing significant challenges due to what he termed a heavy tax burden imposed in recent years. He noted that the reduction of taxes by nearly half would provide much-needed relief to builders, developers and investors.

He said the real estate industry plays a vital role in the national economy and supports dozens of allied industries. According to him, lower taxes would encourage more people to invest in property and construction projects, helping generate economic activity and employment opportunities.

Muhammad Shehbaz, a property dealer and developer, also welcomed the budget measures, saying that the property market had remained largely stagnant for years. He said sale and purchase activities had slowed considerably, creating difficulties for thousands of people associated with the sector.

Expressing optimism about the future, he said the tax relief announced by the government could help revive market confidence and stimulate business transactions. He hoped that investors who had remained on the sidelines would now return to the market.

The positive response was not limited to property dealers and developers. Businessmen associated with the building materials sector also appreciated the incentives and relief provided to the construction industry in the budget.

Malik Arshad, owner of a building materials store, said the government had taken a realistic approach by addressing the concerns of businesses linked to construction activities. He expressed satisfaction over the measures announced in the budget and said they would benefit not only builders but also suppliers and traders connected to the industry.

He further stated that Prime Minister Muhammad Shehbaz Sharif had correctly identified the challenges being faced by the public and the business community and had presented what he described as a balanced budget. He said the relief measures would contribute to economic growth and support the recovery of the construction sector.

Industry representatives expressed hope that the implementation of the announced measures would lead to increased investment, greater construction activity and improved business conditions across the real estate and allied sectors during the coming fiscal year.