IMF allows tax reduction: The International Monetary Fund (IMF) has allowed a two percent reduction in property tax. People associated with the property sector say that this move will boost business activities.
IMF allows tax reduction, According to private TV Sama News, the IMF has agreed to provide a partial concession to reduce the withholding tax rate on property purchases by 2 percent from April 2025 at the request of the FBR, however, the withholding tax rate imposed on sellers will remain unchanged.
According to the FBR, officials have agreed to reduce the federal excise duty on property purchases. The government has convinced the IMF to reduce the withholding tax rate for property buyers by 2 percent. However, this tax will continue to be collected from property sellers.
According to FBR officials, this will pave the way for consensus and agreement on the draft Memorandum of Economic and Financial Policies.
Progress in this regard is likely by next week. The FBR had requested the IMF to reduce the withholding tax imposed on both the selling and buying parties of property.
Contrarily, the IMF also allowed banks to borrow Rs.1250 billion to reduce circular debt in the power sector. Consultations are also being held with the International Monetary Fund on the budget targets for the new fiscal year.
Experts have expressed satisfaction over the progress in relief for the real estate, property and construction sectors.