Real estate tax amnesty bill approved by National Assembly

The last step pending to formally approve the real estate tax amnesty scheme has finally been taken. The National Assembly approved the Income Tax Ordinance (Amendment) Bill 2016 on Wednesday. The bill was presented in the assembly by the Federal Minister for Law and Justice Zahid Hamid. Parliamentary Secretary Rana Afzal Khan shed light on the purpose of introducing this bill. Reportedly, the bill was approved after a short discussion.

The purpose of introducing this bill, according to Khan, is to determine the fair market value of property in the country. Khan also told the house that all stakeholders have been duly taken into confidence regarding the bill. According to a news source, the bill has been sent to the President of Pakistan, who will sign it to implement the amnesty scheme throughout the country within 24 hours.

Non-taxpayers in the real estate sector intending to avail this amnesty scheme will have to pay 3% tax on the difference between DC rates and property values mentioned in the FBR valuation tables to whiten their money. This will automatically make them tax filers and allow them to avail the benefits associated with filing their returns with the tax collection authority.

It must be mentioned here that the Federal Board of Revenue will not inquire about the source of income of only that amount which has been whitened through this amnesty scheme, which is not time-bound and will be implemented right away.

The approval and implementation of this bill is expected to add revenue of trillions of rupees in the construction sector and also assist 72 other industries linked with the construction and real estate sector of Pakistan.