Pakistan, March 22 -- The International Monetary Fund (IMF) has agreed to reduce the withholding tax (WHT) on property purchases by 2%, effective from April 2025. This decision comes after a request by Pakistan's Federal Board of Revenue (FBR) to lower transaction costs in the real estate sector. However, the IMF has decided not to cut taxes for property sellers, keeping their rates unchanged.

In addition to the WHT reduction, the IMF also approved a decrease in the Federal Excise Duty (FED) on property buyers. The higher FED slab will drop from 10% to 9%, but the tax on sellers remains the same. These changes were discussed in a virtual meeting between Pakistani authorities and the IMF, with a staff-level agreement expected soon.

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