![\"tax-amnesty\"](\"http:\/\/www.zameen.com\/blog\/wp-content\/uploads\/2016\/11\/Tax-Amnesty.jpg\")
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The new tax regime had brought along many nuisances for the real estate sector along with a number of positive developments. The regime came into effect on July 1, 2016, after which many risk-averse and short-term investors have stopped trading in the property market.<\/p>\n
While the real estate transaction volume dropped to an alarmingly low level, the national exchequer also suffered a blow in terms of a decreased amount of taxes collected from property transactions.<\/p>\n
Amid all protests held against the implementation of the new tax regime, which literally crippled the property market, the government has finally devised an amnesty scheme to help the real estate sector regain its sheen.<\/p>\n
According to a news source, a parliamentary subcommittee is considering to\u00a0grant an amnesty scheme, allowing real estate investors to declare their income by paying a nominal 3% tax. Reportedly, this tax percentage will be charged on the difference between the DC Rate and the value of property declared by the Federal Board of Revenue (FBR).<\/p>\n
Recommendations regarding the tax amnesty scheme were formalized by a subcommittee of the National Assembly Standing Committee after having some rounds of discussions with real estate stakeholders. Input from Finance Minister Ishaq Dar and Special Assistant to Prime Minister on Revenue Haroon Akhter Khan was also taken in this regard.<\/p>\n
The new legislation bill will be presented in the parliament for approval. Mian Mannan, a member of the subcommittee, told reporters that, if required, a meeting of the National Assembly and Senate Standing Committees would also be called to expedite the approval process, so that the one-time amnesty scheme can be implemented within a month. He also said that the amnesty scheme would remain valid for two to three months.<\/p>\n
Mannan claimed that out of the total $18 billion foreign remittances, half of the amount is invested in the real estate sector. He also said that all real estate transactions are not black-money transactions. Billions of rupees would be added to the national exchequer by the introduction of the one-time amnesty scheme, he added.<\/p>\n
According to Saeed Ahmed Khan, another member of the subcommittee, the tax amnesty scheme will encourage the investors that had purchased properties before the implementation of the new tax regime on July 1, 2016 to sell their properties. However, no information was shared about the properties that were purchased after July 1, 2016.<\/p>\n
Reportedly, the government has also agreed upon the formation of a committee to scrutinise anomalies in the property rates declared by the FBR.<\/p>\n
The tax amnesty scheme will whiten the money invested in the real estate sector before July 1, 2016. This will provide a boost to the property sector for a short period of time. From what I see, those who have invested in the property sector after the implementation of the new tax mechanism will be required to declare the sources of their income, which means several short-term investors will still hesitate to invest in the market.<\/p>\n
On the other hand, the decision to figure out anomalies in the FBR valuation tables is definitely a positive development, as FBR rates of properties in many areas are greater than market rates.<\/p>\n
Do you think the amnesty scheme will prove to be promising for the real estate sector? Share your views in the comments section below.<\/p>\n","protected":false},"excerpt":{"rendered":"
The new tax regime had brought along many nuisances for the real estate sector along with a number of positive developments. The regime came into effect on July 1, 2016, after which many risk-averse and short-term investors have stopped trading in the property market. While the real estate transaction volume dropped to an alarmingly low level, the national exchequer also suffered a blow in terms of a decreased amount of taxes collected from property transactions. Amid all protests held against the implementation of the new tax regime, which literally crippled the property market, the government has finally devised an amnesty scheme to help the real estate sector regain its sheen. According to a news source, a parliamentary subcommittee is considering to\u00a0grant an amnesty scheme, allowing real estate investors to declare their income by paying a nominal 3% tax. Reportedly, this tax percentage will be charged on the difference between the DC Rate and the value of property declared by the Federal Board of Revenue (FBR). Recommendations regarding the tax amnesty scheme were formalized by a subcommittee of the National Assembly Standing Committee after having some rounds of discussions with real estate stakeholders. Input from Finance Minister Ishaq Dar and Special…<\/p>\n","protected":false},"author":14,"featured_media":23593,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"persona":[],"class_list":["post-23592","post","type-post","status-publish","format-standard","has-post-thumbnail"],"acf":[],"yoast_head":"\n