The Federal Board of Revenue (FBR) has turned down the Association of Builders and Developers’ (ABAD) request to relax restrictions on property purchases, maintaining the requirement for financial scrutiny on transactions exceeding Rs10 million.
FBR Upholds Property Purchase Regulations
During a meeting of the National Assembly’s Standing Committee on Finance, chaired by PML-N’s Bilal Azhar Kiani, FBR officials clarified that questioning the source of income for property transactions over Rs10 million remains mandatory.
FBR emphasized that tax filers must continue to disclose income sources via a revised wealth statement. The board also dismissed proposals to consider gold, stocks, bonds, or inherited assets as valid sources for property valuation under existing tax regulations.
ABAD’s Proposal and FBR’s Response
ABAD proposed eliminating income verification for properties worth up to Rs25 million and for first-time homebuyers acquiring properties up to Rs50 million. They argued that strict financial scrutiny could discourage investment in Pakistan’s real estate sector.
However, FBR officials reaffirmed their stance, stating that all property transactions must be recorded under the National Tax Number (NTN) system to ensure transparency and compliance with tax laws.
Impact on Real Estate Sector
The decision to uphold these regulations is expected to impact property investors and developers, as compliance with tax laws remains stringent. The real estate sector continues to face challenges due to financial scrutiny, potentially affecting investment inflows.
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