ISLAMABAD: The International Monetary Fund (IMF) has agreed in principle to grant partial relaxations to the Federal Board of Revenue’s (FBR) request to reduce the Withholding Tax (WHT) rates on property purchases by two percent, effective from April 2025. However, the withholding tax rates on property sellers will remain unchanged.
The IMF has also agreed to reduce the Federal Excise Duty (FED) on property purchasers, while the duty on sellers will remain intact. Additionally, the IMF has approved the FBR’s request to lower the tax collection target for March 2025 by Rs60 billion, considering the increased number of holidays due to the upcoming Eid ul-Fitr. The IMF has also given its assent for raising Rs1,257 billion from banks to address the circular debt crisis plaguing the power sector.