ISLAMABAD: The Federal Board of Revenue (FBR) recently put into effect a new regulation that requires getting a No Objection Certificate (NOC) from the FBR prior to purchasing or selling property in an effort to prevent tax fraud and promote transparency in real estate transactions.
With the passage of this law, the government hopes to increase tax generation while addressing the long-standing problem of black money in the real estate industry.
By ensuring that all property transactions are correctly recorded and taxed effectively, the FBR authorities want to fulfil their goal of taxation.
“This law has been formulated by the government with the aim of bringing non-compliant people into the tax net,” said Mukhtiar Hussain Thahim, Assistant Director at FBR. People who have been avoiding paying taxes will now be obligated to do so, improving overall tax collection.
One of the main effects of this regulation is that anyone who want to purchase or sell property will now need to visit their local FBR office in order to get the required NOC before moving forward with their transaction.
The authorities also stress that this move will encourage non-filers to submit taxes, which will raise income for the government.
Notably, the new regulation could necessitate more work from the general public and real estate experts.
