Karachi: In a groundbreaking move to promote transparency and improve tax compliance, the Sindh province has launched real-time sharing of property transaction data with the Federal Board of Revenue (FBR). This initiative, led by the Board of Revenue (BOR) Sindh, ensures that comprehensive information on property buyers and sellers is now directly accessible to the federal tax authority.
Real-Time Access to Transaction Data
According to FBR officials, the newly implemented online streaming mechanism provides instant access to details of immovable property transactions. This includes critical information such as the tax filer status of buyers and sellers. “This system allows the FBR to monitor high-value transactions and trace the sources of funds used for property purchases,” stated an official, speaking anonymously.
The integration specifically targets non-filers and tax evaders, enabling the FBR to take swift action against individuals who fall outside the formal tax net.
The property market, historically a significant part of Pakistan’s undocumented economy, has been a focal point for tax reforms. By sharing transaction data in real time, the Sindh government and the FBR aim to address the grey areas in the sector, ensuring compliance with tax regulations.
As part of broader efforts to formalize the real estate industry, the FBR has mandated that property payments exceeding specific thresholds must be made through banking channels. This measure is designed to curb unregulated cash flows and enhance transparency.
Revised Property Valuations in Karachi
In addition to the data-sharing initiative, the FBR has recently updated property valuations in Karachi, bringing them closer to market rates. This revision is expected to reduce discrepancies between declared and actual property prices, boosting revenue collection.
Strengthening Pakistan’s Fiscal Framework
The collaboration between Sindh’s BOR and the FBR represents a significant step toward integrating the real estate sector into the documented economy. By closing loopholes and monitoring transactions in real time, the government is poised to tackle tax evasion effectively.
This initiative not only strengthens Pakistan’s fiscal framework but also demonstrates a commitment to fostering accountability and transparency in one of the country’s most critical economic sectors.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
