Islamabad [
Pakistan
], March 24 (ANI): On this date,
International Monetary Fund
(
IMF
) has rejected
Pakistan
‘s
Federal Board of Revenue
‘s (
FBR
request to lower transaction tax rates
property sector
For now, The News International has covered this story.
Previously, high-ranking officials had indicated that the
IMF
had consented to decrease the withholding tax for property buyers by 2 percent starting April 1, 2025, contingent upon receiving written approval from the
IMF
. However, the
IMF
has now formally declared that it will not agree to reduce the transaction taxes for properties.
In addition, the
IMF
has declined to lower tax rates for tobacco and beverages and has recently turned down the proposal
FBR
request to reduce tax rates for the
property sector
. Meanwhile,
Pakistan
and the
IMF
are progressing towardFinalizing a Staff-Level Agreement (SLA). Nonetheless,
Pakistan
will need to furnish written commitments to the
IMF
that the provinces will not get involved in wheat purchasing activities.
The international financial institution has shown its readiness to increase the current $7 billion facility.
Extended Fund Facility
(EFF) with
climate finance
as part of the Resilience and Sustainability Facility (RSF) initiative. This plan will be submitted to the
IMF
‘Executive Board for ratification along with
Pakistan
The News International reported regarding the approval for the issuance of the second installment.
The precise amount of funding allocated through the RSF has not been disclosed; however, it is anticipated that as much as USD 1 billion may be made available via the Climate Resilience Fund (CRF).
Pakistan
Finance Minister Muhammad Aurangzeb expressed optimism on Friday that both parties would soon conclude the Staff Level Agreement.
The
IMF
‘s Resident Chief in
Pakistan
Mahir Binci said, “The
IMF
has not agreed on a lower withholding tax on property transactions and on lowering March 2025 targets,” The News International reported.
On reducing the March 2025 tax collection target, the official sources said that the
FBR
was unable to meet the continuous monthly targets under any circumstances and
IMF
agrees or not, it would experience a shortfall in achieving the desired target of
Pakistan
I have allocated Rs. (PKR) 1,220 billion for this current month.
According to the
FBR
According to their internal evaluation, revenues might decrease by PKR 60 to 80 billion because of a higher number of holidays towards the end of the month for Eid-ul-Fitr. Consequently,
Pakistan
‘Ministry of Finance and the’
IMF
were informed that this deficit of PKR 60-80 billion needs to be accounted for in the revenue collection targets for April and May 2025 instead of June 2025, as increased tax collections are anticipated during the final month of the present fiscal year. (ANI)
Provided by Syndigate Media Inc. (
Syndigate.info
).