The International Monetary Fund (IMF) has recommended Pakistan to raise the Capital Gains Tax (CGT) on real estate transactions as part of the current negotiations for the federal budget for 2025–2026.
According to sources, the proposed increase could elevate the CGT rate to 40%, matching the corporate income tax rate, from the existing 15% rate.
Today, the Federal Board of Revenue (FBR), the Ministry of Finance, and the IMF are still engaged in virtual negotiations. The IMF is advocating for more comprehensive tax reforms to improve the tax-to-GDP ratio, which the next budget aims to reach 11%. In contrast, spending is expected to account for 20.3% of GDP.
