After the amendments to the Income Tax Ordinance 2001 with regard to property taxes, the real estate market has not witnessed much sale-purchase activity. Though genuine buyers are steering the market, investors are still waiting for the right time to jump into property dealing again. Even real estate agents are worried about this sluggish activity and are awaiting some relief regarding property taxes.
According to a news source, the government is planning to announce an amnesty scheme to help the market pick up pace.
Reportedly, an amnesty scheme will be introduced to whiten the black money circulating in the market. The government plans to offer a mechanism to help people declare their hidden assets by paying less than 5% tax.
I have also learnt that that this amnesty scheme will be presented in the National Assembly in the coming days. However, the government is unlikely to roll out a presidential ordinance in this regard. The amendments that are currently under consideration will most probably be proposed in the final draft of the Income Tax (Amendment) Ordinance – 2016.
Section 68, Section 111, and Section 236-P will be changed. These sections deal with fair market values, unexplained incomes or assets, and tax on banking transactions respectively. A meeting to discuss property taxes will also be held with Finance Minister Ishaq Dar.
Due to the newly imposed taxes, sale-purchase activity has come to a halt and an amnesty scheme or some other amendments are direly needed to help the market regain its vigour.
Currently, even popular projects such as DHA and Bahria Town are not seeing any impressive investment activity.
If the tax amnesty scheme is implemented, the property market will most likely experience a sudden turn around. Let’s see how the future unfolds for the real estate market.
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That will be a temporary and artificial step which will once again will affect he genuine buyers and sellers
Dear Aamir sb,
According to my knowledge, this decision is yet to be implemented. You are right, this will affect genuine buyers, but the market will also pick up pace with this development.
The entire real estate industry has come to a stop. Who is going to build the houses for the genuine buyer?
Seems just another speculation theory as it had been in a number of articles on Zameen and other websites.
Most of us would agree that black money has never been an issue in Pakistan as 50% of the businesses are undocumented and it looks like that the regulators are also comfortable with this status quo. Had it been otherwise, you could have seen steps to stop black money making process.
Now coming back to the point in discussion, market does not need any tax or black money amnesty, all it needs is a realistic mechanism of property taxes, earlier it is done, better would be for both public and for revenue collection authorities. Delay would simply crash the market, sellers would stop selling and buyers will not be able to find required property.
I think you are spreading lies!!
@Zain Nadeem, don’t try to fool people with this type of articles. You support only investors not genuine buyers.
It is all on speculations once investor frightened it is very difficult to build up his confidence.1700 PALMAS
Now it will take some time to get back on track.
Prices are declining on daily basis.
There was need of correction it was due and it is been done.
Effects of imposing a tax should be calculated before
The government knew all this going to happen
The minister loves money and his overseas connections
They do not love Pakistan
HOPE THIS AMNESTY DOES NOT COME AS GENUINE BUYERS WILL AGAIN NOT BE ABLE TO BUY HOMES…THESE ARE PRESSURE TACTICS CREATED BY DEALERS AND WEBSITES TO BRING BACK BLACK MONEY IN THE MARKET
THIS IS A TOTALLY BLACK MONEY SUPPORTIVE AND INVESTOR CENTRIC APPROACH.
The policy is to support investors and dealers because you are earning money from dealers. If you study this amnesty policy then you ll have clear idea that after this policy prices’ll go down and it ll be good for middle class who want to buy a plot for his house. SO this scheme ll be very good for middle class . I am 100% agree the following article.
i like Shafique Mohammad’s remaks
http:// www. brecorder. com/pakistan/industries-a-sectors/taxation/181:pakistan/91225:real-estate-transactions-fbr-empowered-to-seek-explanation-from-buyers-sellers/?date=2016-10-06
FOR EVERYONES INFO
Whatever, such measures by FBR is at least protecting genuine buyers who are looking for a roof for their children. There should be no amnesty for thieves and criminals.
What else do you expect from money launderers and plunderers like him. Sad it is though.
Wouldn’t the effect be a reduction in prices, as people with black money try to exit the sector? However, sellers will remain limited to genuine buyers? If supply exceeds demand, prices fall.
Why amnesty is required to support the market? The current measures kept the so called investors and dealers into control and created a hope for the genuine buyers.
Black money should be used somewhere else rather in real estate market. People sold the factories and invested that money into real estate. This brought unemployment for common people but brought money for so called investors and Zain like dealers.
Dealers are sitting for such investors and their strikes are for them. Genuine buyers should not attach any hope with them,
http:// www. brecorder. com/pakistan/industries-a-sectors/taxation/181:pakistan/94366:real-estate-sector-no-amnesty-scheme-under-study-fbr/?date=2016-10-19
THERE IS NOO AMNESTY COMING THESE WERE JUST RUMOURS.
Please advise me this real estate amenesty scheme is Valld upto what date of n other words upto what date we can avail this ammenesty. Thank you