ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs 51 million income tax out of 1,919 transactions of land worth Rs 1.4 billion made under newly announced tax amnesty scheme. These transactions of land have been made by the sellers and buyers from December 7 to December 26, 2016.
According to a brief presented by the members of the FBR, Rehmatullah Khan Wazir and Dr Muhammad Iqbal, before the Senate Standing Committee on Finance and Revenue, the FBR did not agree to the committee on the issue of promulgation of Income Tax (Amendment) Act 2016.
The brief said that disclosure of source of income of differential amount lying between the DC and FBR rates of immoveable has been exempted after payment of one time three percent tax by the purchaser of the land.
Income Tax (Amendment) Act 2016 was promulgated in July this year and the FBR was empowered to specify rates of the purpose of valuation of immovable property. Accordingly, FBR notified valuation in respect of property in 21 major cities in accordance with the said amendment.
The FBR brief said that in a meeting of National Assembly Standing Committee on Finance and Revenue held in October this year, various proposals were put forth by the members of committee in respect of the explanation of the sources of investment made in immovable property or subjecting to the differential between DC rates and FBR notified rates to nominal fixed tax rate.
However, the FBR did not endorse those proposals, therefore, a sub-committee was constituted to make its recommendations in consultation with stakeholders for resolving the issue of imposition of tax on real estate transactions.
