The International Monetary Fund (IMF) has ultimately declined the Federal Board of Revenue’s (FBR) request to lower transaction taxes for the property sector at this stage.
Previously, senior officials asserted that the Washington-based lender had, in principle, agreed to reduce the withholding tax on property buyers by 2% starting April 1, 2025, contingent on obtaining formal approval in writing.
Now the IMF has stated officially that it has not agreed to slash the transaction taxes for property.
The IMF had also refused to lower tax rates for tobacco and beverages and now refused to entertain the last and final plea of the FBR to slash the tax rates for the property sector. On the other hand, Pakistan and the IMF were moving towards striking a Staff Level Agreement (SLA) but Pakistan will have to give assurances to the IMF in writing that the provinces would not plunge into procurement of wheat.
