IMF refuses to allow Pakistan a reduction in property tax

The International Monetary Fund (IMF) has rejected the FBR’s request to reduce the property transaction tax rate, media reported on Monday.

IMF chief in Pakistan Maher Banchi has said that it has not even agreed to reduce the March 2025 targets.

According to details, it has been learned that the IMF, in its final decision, has rejected the FBR’s request to reduce transaction taxes for the property sector.

Earlier, top officials had claimed that the IMF has in principle agreed to a 2% reduction in withholding tax imposed on property buyers from April 1, 2025, provided that its written approval is obtained from the IMF.

Now the IMF has officially stated that it has not agreed to reduce taxes imposed 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 give 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.