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IMF rejects FBR’s request to reduce property transaction taxes
ISLAMABAD (92 News) The International Monetary Fund (IMF) has rejected the Federal Board of Revenue’s (FBR) request to reduce transaction taxes in the property sector.
Despite earlier claims by senior officials that the IMF had agreed in principle to a 2% decrease in the withholding tax on property transactions starting April 1, the IMF has clarified that no such agreement has been made.
The IMF also refused to lower tax rates on tobacco and beverages, maintaining its stance on revenue collection targets.
Pakistan and the IMF are progressing towards a Staff Level Agreement (SLA), with the IMF requiring written assurances that provinces will not engage in wheat procurement during any potential shortage.
The IMF has also expressed its willingness to supplement Pakistan’s $7 billion Extended Fund Facility (EFF) with additional climate finance under the Resilience and Sustainability Facility (RSF), potentially allocating up to $1 billion for the Climate Resilience Fund (CRF).
Concerns over the FBR’s revenue collection targets persist, with a shortfall of Rs60-80 billion expected for March 2025 due to extended Eid holidays.
Proposals have been made to shift this shortfall to the revenue targets for April and May, rather than June.