Govt Under Pressure to Allow Property Purchases of Up to Rs. 25 Million

The Federal Board of Revenue (FBR) is considering allowing property purchases of up to Rs. 10 million without requiring buyers to disclose the source of their income. The proposal is facing resistance from lawmakers concerned about potential loopholes that could facilitate the flow of black and untaxed money into the economy. Meanwhile, the Association of Builders and Developers has proposed increasing the exemption limit to Rs. 25 million and up to Rs. 50 million for first-time home buyers. However, tax officials have warned that such measures could amount to a perpetual tax amnesty. The FBR has proposed limiting property purchases to 130 percent of a buyer’s declared liquid assets, with any excess requiring upfront proof of income. The National Assembly Standing Committee on Finance recently suggested expanding the definition of liquid assets to include gold, bonds, livestock, and other immovable property so taxpayers aren’t forced to sell existing assets before buying new property. FBR has admitted that it lacks an efficient platform for buyers to submit proof of resources before completing transactions. Lawmakers have called for a test run of any proposed system before any full-fledged implementation.