IMF Rejects FBR’s Request to Reduce Property Transaction Tax Rate
Islamabad: The International Monetary Fund (IMF) has rejected the Federal Board of Revenue’s (FBR) request to lower the property transaction tax rate.
Maher Banchy, the head of the IMF in Pakistan, has stated that there is no agreement to reduce the March 2025 targets either.
According to details, the IMF has formally declined FBR’s request to reduce the taxes on property transactions. Prior to this, high-ranking officials had claimed that the IMF had agreed in principle to reduce the withholding tax on property buyers by 2% from April 1, 2025, provided written approval was obtained from the IMF.
However, the IMF has now officially stated that it has not agreed to any reduction in property transaction taxes.
The IMF had previously rejected a proposal to lower the tax rate on tobacco and beverages and has now dismissed FBR’s final request to reduce the property sector tax rates.
On the other hand, Pakistan and the IMF are moving towards a staff-level agreement, but Pakistan will have to provide written assurance to the IMF that the provinces will not intervene in wheat procurement.
The IMF has also expressed readiness to include climate finance under the existing $7 billion Extended Fund Facility, which will be presented under the Resilience and Sustainability Facility.
