The Federal Board of Revenue in Pakistan commonly said as FBR assured IMF to bring the Real Estate sector under the tax network.
Negotiations between Pakistan and the IMF on a $3 billion standby agreement are signed at the staff level. The IMF board made sure to increase the revenue in the upcoming times. However, the IMF has requested that Pakistan introduce a capital gains tax (CGT) on real estate as a condition of the agreement.
As per the local media reports, the IMF recommended imposing taxes on new financial investments. The IMF also proposed a new real estate policy to combat tax evasion and generate more income from Pakistan.
All the transactions would be made through banking, which was recommended in the meeting.
The tax would be increased for the non-filers property buyers in the real estate sector.
Housing societies would be registered.
The guidelines stipulate the necessity of documenting and declaring all property transactions and ensuring the registration of property titles. Failure to comply with these regulations could lead to significant penalties. Furthermore, the IMF has recommended amendments to the “Personal Moveable Property” section within the Income Tax Law.
The negotiations succeeded, and the IMF will release the remaining $1.1 billion bailout package to prevent sovereignty debt. These recommendations could potentially be integrated into the future assistance package as part of the Extended Fund Facility (EFF) program.
Moreover, the Federal Board of Revenue (FBR) can also be included in the financial bill, which will be part of the 2025 budget.
