ISLAMABAD: After the launch of amnesty scheme for real estate sector, the Federal Board of Revenue has collected Rs330million under Section 236w (Advance Tax on Property) from 13,500 transactions in just less than two months, 7th of December 2016 to up to 31st of January 2017.
According to details, in December 2016, 4,319 transactions were made, and the FBR received Rs94million under the head of Advance Tax. By January 2017, 9, about 181 transactions were made, and the FBR collected revenue of Rs321million. So the FBR’s policy to bring the real estate sector in the tax-net has been successful.
It is pertinent to mention here that this tax is being collected on the difference between the revised FBR valuation rate and the district commissioners’ (DC) rate under the scheme. The tax collected under the Section 236w is not adjustable. As a result of transactions, Rs11.2 billion black money of real estate sector has been converted into white money. The Federal Board of Revenue is expecting to collect Rs40billion revenue by this amnesty scheme.
According to an FBR estimate, around Rs4000billion is evaded in the property sector each year. It is also important to mention here that this scheme is available for an unspecified period. People, whitening the money in the real estate sector, will not be asked to mention their source of income but next year taxpayer will have to pay income tax on this amount as per law.
