ISLAMABAD: After the approval of finance bill, the Federal Board of Revenue (FBR) will introduce a mechanism to determine the real value of properties and houses in order to detect the people who declare lower value to avoid paying taxes.
The prices of the properties are increasingly rapidly in country and around Rs 2500 billion invested in a non-productive sector i.e. real estate sector every year instead of establishing factories and industries.
This was told by Federal Board of Revenue (FBR) Inland Revenue-Policy Member Rehmatullah Khan Wazir, adding that “We intend to limit the investment in this sector through financial laws”.
The FBR was working to clamp down on the people who purchased high-priced properties but mentioned lower price in official documents in order to avoid taxes, he said, adding that an unbiased official will be appointed to determine the values of houses and properties.
Currently, the powers of the FBR were limited, but after the approval of finance bill, the board will have authority to determine the value of properties. The owners of such properties will be issued notices to bring them into tax net.
Meanwhile, the FBR has obtained the record of 7 million big houses, besides getting access to the record of owners of two million houses, located in urban areas. The department will sent notices to the owners with the start of new fiscal year. The board aimed at collecting Rs 136 billion through this procedure.
