The International Monetary Fund (IMF) has prohibited the Federal Board of Revenue (FBR) from reducing transaction taxes on Pakistan’s property sector.
This development contradicts earlier claims by federal government officials that the IMF had agreed in principle to lower the withholding tax on property purchases by 2 percent from April 1, 2025.
The IMF has also stood its ground against lowering tax rates on tobacco and beverages. Meanwhile, the federal government must also provide written assurances that provinces will not engage in wheat procurement in case of shortage.
The IMF has expressed willingness to expand Pakistan’s existing $7 billion Extended Fund Facility (EFF) with climate-related funding under the Resilience and Sustainability Facility (RSF). While the exact amount remains uncertain, earlier reports suggest up to $1.2 billion could be allocated for a Climate Resilience Fund (CRF).
IMF Resident Rep Mahir Binci confirmed that the lender has not agreed to lower withholding taxes on property transactions or adjust tax collection targets for March 2025. So it seems FBR is likely to miss its Rs. 1,220 billion revenue target for the current month. A proposal has been made to shift this shortfall to April and May’s targets rather than June.
Good joke.
Imf knows that pakistan govt is facilitating it’s richest to be out of tax network.
Most beverages and smoke companies and property barons are in power. Imf denied then their slice of pie.
very good, property tax should stay to avoid new malik riazs
Good move IMF. Property tax should increase further for genuine buyer to buy homes.
hum kal bhi angrezo k gulam thay aur aaj bhi… bus style change ho gya hah… :)
IMF buhat siyana hai har woh kaam kar raha hai jis is mulk mein anarchy paida ho, jab Govt. anpe chahitun ki 188% salaries increae kare aur kisi perk & benefit mein kami ho kuch nai biota. aur jaisse hi kui relief ordinary awam ko milne lage isko foran terms & conditions yaad ajati hain. shaabash beta.