IMF opposes tax relief for real estate

March 2025

Reading Time: 3 minutes

As the real estate sector in Pakistan faces significant taxation and increasing regulatory hurdles, the property market has been stagnating for the past year. In order to remedy this, the government had authorized Federal Board of Revenue (FBR) to seek a reduction in withholding tax on property transactions by 2%. The relief was expected from April 1, 2025.

However, this proposal for tax reduction was denied by the International Monetary Fund (IMF) just this week when FBR presented this proposal to it. Currently, withholding tax on property transactions is 3% for buyer and seller if they are both tax filers and 10.5% and 12% respectively if they are non-filers for properties valued less than Rs. 50 million and higher for others.

Sources:

https://bloompakistan.com/imf-stands-firm-no-tax-relief-for-property-transactions/