The Chairman of the Federal Board of Revenue (FBR), Rashid Langrial, announced that disclosing income in tax returns is now mandatory for purchasing properties worth over Rs10 million or Rs1 crore.
Speaking to the National Assembly’s subcommittee on finance, he explained that individuals must show at least Rs13 million in income to buy a single plot. For additional property purchases, higher income disclosures will be required.
Langrial highlighted that most undeclared wealth is flowing into the real estate sector, targeting the top 2.5 per cent involved in high-value property transactions.
Pakistan’s tax chief also said that there are hardly 12 Pakistanis who declared wealth of Rs10 billion ($36 million) or more in their returns a statement that shows the collapse of the tax machinery and its inability to expand the narrow base.
Langrial stressed that economic activities should have a link with the personal wealth of the people.
Ealier, FBR announced that non-filers are allowed to purchase properties worth up to PKR 1 crore.
According to the board, this big change will significantly grow Pakistan’s real estate market and open up new business opportunities.
The FBR aims to reduce black money in real estate to make the market more controlled and clean.
This decision is expected to increase real estate deals and help revive the market.
