Islamabad: The International Monetary Fund (IMF) in continued negotiations for another loan program has declared measures bringing to the real sector into the tax net Insufficient.
As per the talks between the Federal Board of Revenue (FBR) , sources said that Pakistan has ensured the IMF taking initiatives to make the real state sector documented.
The IMF has also sought suggestions to link buying and selling of plots in the private housing societies to the FBR.
The IMF agreed on a suggestion increasing tax on non-filers over buying and selling of pots.The IMF has demanded to increase additional tax on giving and taking of cash.
On the other hand, the federal government and provincial governments could not be agreed regarding the taxes.
The mechanism of taxation of registration for the private housing societies, selling and buying of plots could not be prepared.
Moreover, the IMF expressed its dissatisfaction over insufficient measures for bringing the real state sector into the tax net.
The FBR sources said that there is a suggestion for bringing the real sector into the documented form to use banking channel instead of giving and taking of cash.
The IMF has also demanded to impose additional taxes on giving and taking of cash in the sale and purchase of the plots while it also demanded registration of cutting of plots in the housing societies, land purchasing including all the records.
However, all the data of property agents and all sale and purchase of plots will be formally will be registered in the FBR.
Whereas to end undocumented transactions of the real sector measures will be taken in the budget.
Sources said that a rate of taxes be increased for the non-fillers on sale and purchase of the plots whereas now seven percent with-holding tax and four percent gain tax imposed on the non-fillers sale and purchase of the plots.
