ISLAMABAD: Recommended amnesty scheme for real estate sector seems doubtful, as the Federal Board of Revenue (FBR) has rejected it saying the purpose to tax the sector will lose its worth, it is learnt.
Sources said that members of the FBR also expressed concerns that the scheme would yield the same results, which were faced after announcing amnesty scheme for traders, besides suggesting the government should not implement plan-b for real estate sector.
It may be mentioned that the Lahore High Court (LHC) few days ago had suspended a SRO 608 that remained controversial regarding the imposition of sales tax on traders. The application, which was submitted to the LHC against the SRO, also termed the decision of the FBR discrimination between the traders.
The FBR has sent a copy of the decision to the Ministry of Finance regarding the SRO, besides informing the ministry that the FBR would have to face shortfall in revenue collection, if proposed amnesty scheme for real estate sector was challenged in the court and a stay order is issued on it.
The sources said that the FBR is opposing the scheme as it could benefit only few persons, adding that people did not want to be a part of tax system, as most of investment in real estate sector is of black money. They added that the amnesty scheme would only be used for whitening the black money.
It is pertinent to mention here that the FBR had opposed the amnesty scheme for traders, but it announced it due to political pressure.
Now, the FBR has strictly opposed the suggestion and decided that it will not be granted. If government takes such steps, the FBR will not take its responsibility.
A subcommittee of the National Assembly Standing Committee on Finance has recommended an amnesty scheme for the real estate sector, though which the investors would be offered to declare their hidden assets by paying a nominal rate of only 3 percent.
