The government has started negotiations with the IMF to reduce property taxes, but the matter is difficult

In the meeting of the National Assembly Standing Committee on Finance, the FBR said that negotiations are underway with the IMF to reduce the Withholding Tax imposed on the purchase and sale of property in the budget of the next financial year, but these negotiations are at a difficult stage.

FBR Member Land Revenue Policy Sajjad said in clear words that there will be a dispute with the IMF on this issue because the reduction in tax rates under Section 236C and 236K of the Income Tax Ordinance 2001 is no longer within the FBR’s control. That is, even if they want to give this relief, it is not possible without the approval of the IMF.

The meeting also discussed the possibilities of investment in real estate by overseas Pakistanis after the Gulf War. Economist Ali Salman said that the total circular debt of electricity and gas has reached Rs 5.1 trillion, of which the share of the gas sector is Rs 3.3 trillion and electricity is Rs 1.8 trillion. Pakistan’s external debt has also increased to $ 137.56 billion.

These figures paint a very worrying picture for the overall economic picture, and the attempt to reduce property taxes comes at a time when the IMF is already pushing for an increase in the tax net.