Major relief for real estate sector: IMF agrees to reduce withholding tax on property purchases.

ISLAMABAD: The International Monetary Fund (IMF) has agreed to reduce the withholding tax on property purchases by 2%, providing partial relief to buyers following a request from the Federal Board of Revenue (FBR).

According to private media reports, the FBR had sought concessions under Sections 236C and 236K of the tax law for both buyers and sellers. However, the IMF has only approved tax relief for buyers.

This decision will take effect from April 2025, while the withholding tax rate for sellers will remain unchanged.

The move comes amid growing complaints from real estate developers and housing societies in Sindh and Punjab, who have been protesting the imposition of double taxation during the initial allotment phase of property registration.