IMF 'dissatisfied' with Pakistan's steps of bringing real estate into tax net
- By Shoaib Nizami -
- May 17, 2024
ISLAMABAD: Pakistan has reportedly failed to convince the International Monetary Fund (IMF) on the steps to bring real estate sector into the tax net, ARY News reported on Friday, citing sources.
The fifth round of talks is underway between Pakistan and IMF as the South Asian nation is seeking a fresh bailout package to address the balance of payments issue.
Sources privy to the development said, the IMF mission showed its consent on Pakistan’s proposal of increasing tax on the sale and purchase of plots for the non-filers.
In order to document the real estate sector, it has been proposed to use banking channels instead of cash transactions. Sources added that all records, including cutting and purchasing, of plots in housing societies will be registered.
Read more: IMF ‘asks’ Pakistan for privatisation of national entities
Data of property agents and the sale and purchase of plots will be registered in the Federal Board of Revenue (FBR), sources added.
Sources claimed that measures would be taken in the upcoming budget to end undocumented transactions in the real estate sector. Furthermore, proposals to levy tax on transactions of files in the property sector will be prepared.
During the talks so far, the fund has reportedly demanded to jack up electricity and gas prices, and showed concern about the increasing losses of the state-owned entities.