No Property Purchases without Disclosing Source of Income: FBR

The Federal Board of Revenue (FBR) has rejected a proposed tax amnesty that would allow individuals to buy high-value properties, flats or housing units without disclosing their source of income. The tax authority asserted that individuals must meet eligibility criteria by declaring their income before acquiring assets.

In a National Assembly Sub-Committee on Finance and Revenues meeting led by MNA Bilal Azhar Kiani, Hassan Bakhshi from the Association of Builders and Developers of Pakistan (Abad) presented proposals for the Tax Laws Amendment Bill 2024. Abad proposed allowing non-filers to purchase properties worth up to Rs25 million, reducing their initial demand of Rs50 million. However, FBR stood firm against the proposal.

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The FBR’s Member Tax Policy clarified that tax amnesty could not be granted. Under the proposed amendment bill, only properties valued below Rs10 million can be purchased without additional requirements. Buyers of properties exceeding Rs10 million must prove their declared worth in previous tax returns. To facilitate this, FBR plans to launch an app for voluntary return amendments, allowing buyers to meet the required eligibility.

The sub-committee has yet to finalise its recommendations and will reconvene on Friday (today) to develop a proposal for the NA Standing Committee on Finance.