IMF refuses to reduce tax rate on property transactions

Islamabad: The International Monetary Fund (IMF) has rejected the FBR’s request to reduce the tax rate on property transactions.IMF chief in Pakistan Maher Banchi has said that there has been no agreement on reducing the March 2025 targets.According to details, it has been learned that the IMF, in its final decision, has currently rejected the FBR’s request for a reduction in transaction taxes for the real estate sector.Earlier, top officials claimed that the IMF had agreed in principle to a 2% reduction in the withholding tax imposed on property buyers from April 1, 2025, provided that written approval is obtained from the IMF.Now the IMF has officially stated that it did not agree to a reduction in taxes on property transactions.The IMF had already refused to reduce tax rates on tobacco and beverages and has now rejected the FBR’s latest request for a reduction in tax rates for the property sector.On the other hand, Pakistan and the IMF are moving towards a staff-level agreement, but Pakistan will have to provide a written assurance to the IMF that the provinces will not interfere in the procurement of wheat.The IMF has expressed its willingness to include climate finance in the existing $7 billion Extended Fund Facility, which will be offered under the Resilience and Sustainability Facility.