The IMF has outlined a plan for the Fiscal Affairs Department to increase its primary balance by 6 percentage points, reaching 2.3 per cent by 2025, through reforms like introducing a wealth transfer tax and revamping property tax laws.

Central to this strategy is the implementation of an imputed rental income tax (IRIT) by 2025, which will target properties above a specific value threshold.

A crucial part of the government’s tax overhaul includes a reform of the capital gains tax, aligning it more closely with international standards, IMF‘s recent technical report revealed. .

The IMF recommends replacing the existing exemption for the sale of a first home with a value threshold, thus broadening the tax base.