ByFBR announces a new policy allowing non-filers to buy property worth up to Rs. 1 crore without source-of-funds inquiries, boosting real estate activity.
The Finance Committee of the National Assembly witnessed a significant announcement by the Federal Board of Revenue (FBR) Chairman regarding property transactions for non-filers. This decision introduces a limit allowing non-filers to conduct property transactions up to Rs. 1 crore without being questioned about the source of funds.
Under this policy, non-filers can purchase property worth up to Rs. 1 crore through cash payments or banking channels without facing inquiries about their financial resources. This move aims to address the stagnation in Pakistan’s real estate sector, which had been negatively impacted by stringent tax regulations and procedural hurdles introduced earlier.
The concept of late filing, introduced in the Finance Act 2024, was meant to enhance tax compliance. However, it inadvertently led to a decline in property transactions, crippling the real estate industry. Excessive taxes and stringent checks deterred investors, causing a downward trend in property transactions and significant revenue losses for the government.
To counter this, FBR has now relaxed restrictions, enabling non-filers to engage in smaller property transactions. This measure is expected to revive the real estate market, boost tax collection, and encourage economic activity. For transactions above Rs. 1 crore, higher tax slabs for non-filers—12% on purchases and 10% on sales—will still apply.
By introducing this new policy, FBR aims to balance revenue generation with the need to rejuvenate Pakistan’s real estate sector while providing ease for smaller investors and buyers.
