![\"tax-amnesty\"](\"http:\/\/www.zameen.com\/blog\/wp-content\/uploads\/2016\/11\/tax-amnesty.jpg\")
\nWell, it has been done finally! A Standing Committee of National Assembly (NA) on Finance and Revenue approved an amnesty scheme for the property sector on Tuesday. According to this scheme, property investors will be required to pay 3% tax on the difference between the DC rate of property and prices declared by the Federal Board of Revenue (FBR) in its valuation tables to whiten their untaxed money. According to the initial details, this will be a one-time amnesty.<\/p>\n
The NA standing committee considered recommendations of its sub-committee. The sub-committee had suggested the government charge 1% in total as Withholding Tax, Advance Tax and Capital Gains Tax (CGT) on property transactions. The committee also proposed that the government may charge 3% to 6% CGT on the FBR value of property or 1% CGT on the fair market value, whichever is higher.<\/p>\n
On fixing valuation tables (a major concern of the property investors), the committee recommended FBR to immediately rectify the flaws with the consent of stakeholders. Reportedly, the government would incorporate these recommendations in the Income Tax Ordinance 2016 Amendment Bill.<\/p>\n
The amnesty scheme was introduced as a result of the countrywide protests held by real estate agents and also due to a virtual halt in the real estate trade activity. The stakeholders concerned had also noticed a stark drop in real estate investment activity\u00a0by overseas Pakistanis.<\/p>\n
The new tax mechanism is bound to affect 50 industries associated with the real estate sector. Furthermore, the tax authorities have also noticed a sudden drop in the tax revenue collected from the property sector. In addition to that, capital flight to other countries has also been recorded.<\/p>\n
In such circumstances, announcement of a tax amnesty scheme was deemed essential. We hope that the amnesty scheme will prove to be favourable for the property sector and will add certain transparency to the industry that contributes massively to the national exchequer.<\/p>\n","protected":false},"excerpt":{"rendered":"
Well, it has been done finally! A Standing Committee of National Assembly (NA) on Finance and Revenue approved an amnesty scheme for the property sector on Tuesday. According to this scheme, property investors will be required to pay 3% tax on the difference between the DC rate of property and prices declared by the Federal Board of Revenue (FBR) in its valuation tables to whiten their untaxed money. According to the initial details, this will be a one-time amnesty. The NA standing committee considered recommendations of its sub-committee. The sub-committee had suggested the government charge 1% in total as Withholding Tax, Advance Tax and Capital Gains Tax (CGT) on property transactions. The committee also proposed that the government may charge 3% to 6% CGT on the FBR value of property or 1% CGT on the fair market value, whichever is higher. On fixing valuation tables (a major concern of the property investors), the committee recommended FBR to immediately rectify the flaws with the consent of stakeholders. Reportedly, the government would incorporate these recommendations in the Income Tax Ordinance 2016 Amendment Bill. The amnesty scheme was introduced as a result of the countrywide protests held by real estate agents and also…<\/p>\n","protected":false},"author":18,"featured_media":23620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15015,15016],"tags":[3579],"persona":[],"class_list":{"0":"post-23706","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-taxation","8":"category-new-developments","9":"tag-details-on-the-amnesty-scheme","10":"cat-15015-id","11":"cat-15016-id"},"acf":[],"yoast_head":"\n