The International Monetary Fund (IMF) has instructed Pakistan to increase the advance tax on the purchase of immovable properties in the upcoming budget. Sources told Bloom Pakistan that the IMF directed the Federal Board of Revenue (FBR) to raise the advance tax on non-filers purchasing immovable property.Currently, the FBR imposes a 3 percent tax on filers and a 10.5 percent tax on non-filers, collecting Rs. 80 billion this fiscal year. The IMF has now proposed raising the advance tax on non-filers. Specifically, they suggest a 3 percent tax on filers and a 6 to 7 percent tax on non-filers for properties up to Rs. 50 million.For properties valued between Rs. 50 million to Rs. 100 million, the IMF recommends a 4 percent tax on filers and a 12 percent tax on non-filers. For properties over Rs. 100 million, the proposed rates are 5 percent for filers and 15 percent for non-filers.The IMF informed Pakistani authorities that these changes could potentially generate over Rs. 100 billion if approved by parliament for the next fiscal year.
