IMF Orders Pakistan to Increase Tax on Purchases of Property

The International Monetary Fund (IMF) has directed Pakistan to increase advance tax on the purchase of immovable properties in the upcoming budget. Sources told ProPakistani that the IMF has directed the high-ups of the Federal Board of Revenue (FBR) to increase advance tax on non-filers for the purchase of immovable property. The FBR had imposed a 3 percent tax on filers and a 10.5 percent tax on nob filers during the current fiscal year, and it collected Rs. 80 billion during this year. Now, the IMF has directed to increase advance tax on non-filers for the purchase of property. Sources said that the IMF proposed a 3 percent tax on filers and a 6 to 7 percent tax on non-filers for the purchase of property up to Rs. 50 million. Similarly, the lender also proposed a 4 percent tax on filers and a 12 percent tax on non-filers for the purchase of property worth Rs. 50 million to Rs. 100 million. Furthermore, IMF also proposed a 5 percent tax on filers and a 15 percent tax on non-filers for the purchase of property worth over Rs. 100 million. Sources said that the IMF informed the Pakistani authorities that it can collect over Rs. 100 billion if parliament approves the proposed plan for the next fiscal year.