Real estate amnesty may deprive fbr of billions in revenue – pakistan – dawn. com

ISLAMABAD: At a time when tax compliance has fallen to dismal levels, the government is considering yet another tax amnesty scheme that will allow property owners to whiten their money parked in the real estate sector.

The National Assembly’s Standing Committee on Finance has cleared the proposed scheme despite opposition from the tax department, and if approved by parliament, it will become the third such amnesty scheme promulgated by the Pakistan Muslim League-Nawaz government since 2013.

The tax department, which is visibly perturbed by the move, seems helpless to block it as the finance ministry has already green-lighted the scheme.

A source in the finance ministry told Dawn the ministry had agreed with realty stakeholders in principle to impose a special rate of three per cent for a period of two years.

As per the proposed scheme, the tax will be paid on the difference between the revised Federal Board of Revenue (FBR) valuation rate and the district commissioner (DC) rate. Apple cider vinegar nutritional information Both rates are not representative of actual transaction values and this scheme will exclude around 90pc of the actual value of the property from the tax net.

In case the tax amnesty is not promulgated, FBR can theoretically collect around Rs1,400 billion in taxes from the property transactions between individuals that take place in one year at the normal tax rate of 35pc. Apple cider vinegar tablets reviews Over and above this, another Rs1,400bn can be levied on these transactions in the form of penalties.

But under the proposed scheme, the FBR will hardly get Rs120bn on the same transactions at the rate of 3pc. Apple country animal hospital According to an FBR estimate, around Rs4,000bn is being parked in the property sector each year.

Initially, it was agreed that amnesty scheme would only be offered on the actual declared transaction value, but this proposal met stiff opposition from the realty sector, which was also supported by elements within the government. Apple country club plaza The scheme will only be applicable on properties purchased before July 1 this year.

Section 111 of the Income Tax Ordinance 2001 can be invoked to deal with undisclosed or concealed income if the buyers cannot substantiate their sources of income. Apple country farm market As a result, the difference between the FBR valuation and the DC rate will be taxable at the normal rate (up to 35pc) along with any penalties that may be imposed.

A tax official said that a substantial portion of property transactions was made with undeclared money.

A tax expert said the proposed scheme would only help a few people who had parked ‘black money’ in the real estate market. Apple country realty Much like remittances, the expert said, the government was providing yet another avenue to people to invest their money in real estate and whiten it by only paying 3pc tax.

To implement the proposed amnesty scheme, government is amending Section 111 of the Income Tax Ordinance.

In the budget for 2016-17, the taxable period for capital gains tax on disposal of immovable property was extended up to three years and a flat 10pc tax has been made applicable on the seller of the immovable property if he disposes of it within one year of its purchase, 7.5pc if it is disposed of within two years and 5pc if it is sold within three years. Apple dietary fiber There will be no capital gains tax after three years.

But through an amendment to Section 68 of the Income Tax Ordinance, 2001, the task of determining the fair market price of property has been given to the FBR.

As a result, the new property tables, which came into effect on July 31, 2016, will be used for the calculation of federal taxes — capital gains tax, withholding tax and section 111 of the Income Tax Ordinance 2001. Apple fiber It was also agreed with realty stakeholders that the rates would be brought closer to the actual market value within the next three years.

Internationally, tax is charged on transaction value, but in Pakistan the collector value is much lower than the actual transaction value. Apple fiber content In the provinces, the valuation table is notified by the district collector under Section 27-A of the Stamp Act, 1899.

Great analysis I must say. Apple fiber count Well, theoretically the FBR can collect 35% tax on the undeclared incomes, but that hasn’t been happening, so why should FBR resist the amnesty scheme under this logic?

The FBR should instead oppose the amnesty by saying that now we have an efficient system in place to nab the black income. Apple fiber powder The Finance Ministry should have supported FBR and also blocked the escape route of black income earners in the shape of liberal Foreign Currency Bank Account regime.

They are all colluded, FBR, Politicians, Finance Ministers officials and the only billionaire accountant in the world today and current Finance Minister Dar. Apple fruit nutrition Only party at loss is poor people like your servants who toil every morning to walk to your home, malnourished, over worked, underpaid, getting by and doing best to take care of their children. Apple juice nutrition facts They only look forward to and in hope that their children may do better than them. Apple juice nutrition label They don’t know that they won’t be better of since these filth of Earth will make sure they don’t.

The best country in the world for corruption, tax fraud, any other means of earning black money! Because rest assured there is always a tax amnesty scheme around the corner for everyone. Apple muffins Even then only a few would avail this scheme becuase they know nothing will happen come what may.

A political system run through the patronage of the corrupt cannot do anything to correct it.

If 100 people need apple from market and price of apple is 100 rupees per kg, then if 50 speculative buyers buy all apple from market and then sell apple to the real needy buyer on high price of 300 rupees per kg and mint money from needy, it is illegal. Apple muffins healthy In real estate, people only mint money from real needy buyers who want home after retirement. Apple muffins with applesauce New housing projects depends on real buyers. Apple nutrition The more real buyers of houses,the more real estate will progress but in Pakistan people sit at home, hoards dollars or buy plots and eats free lunch and destroy pockets of needy. Apple nutrition carbs They buy on 20 lakhs and sell to needy buyer on 30 lakhs. Apple nutrition chart They only increase prices and loot needy buyers. Apple nutrition data Real buyers should dtermine demand and supply of houses and speculative buyers need to be crushed with taxes who just buy and sell and buy and sell to loot people

I also demand amnesty scheme for salaried individuals and for those who are paying their tax honestly….. Apple nutrition facts why should I pay tax ??? Limit of stupidity is that they select cases for audit from those who have paid tax….why not check bank transactions and select audit case ????

actually FBR has never provided comfort to tax payers and filers.that is the reason people don’t like to file tax returns.for example government increased the income tax for filers on stock dividend from 10% to 12.5% irrespective of income.i was expecting that they will reduce tax rate for filers but practice in our country is to push those citizens who are already in tax net.

Leave a Reply

Your email address will not be published. Required fields are marked *