ISLAMABAD: The Federal Board of Revenue (FBR) has dispelled the impression that tax scheme on property has been launched to benefit some specific persons or groups, saying the FBR reserves the rights to question about the source of income from the people.
The FBR has also regretted that the private banks were sharing required data about the financial transactions made by the potential taxpayers or corporate groups.
Briefing the Senate Standing Committee on Finance and Revenue, FBR Chairman Nisar Mohammad Khan, said that the FBR had increased tax rates of properties and lands of housing societies in 21 cities and other areas of the country.
“Therefore, there is no reality that the said action has been taken just to benefit some specific individuals or corporate groups. Through this property tax, FBR has tried to bring untaxed sector into tax net for the first time in the history of the country. Moreover, this measure has been taken under the budgetary proposals moved and agreed by the real estate sector” he maintained.
Replying to a question about any possible tax amnesty scheme for real estate sector, Chairman FBR categorically said that there was no proposal under consideration at any level within tax authority for launching any tax amnesty scheme for real estate sector.
However, National Assembly Standing Committee on Finance and Revenue has moved two verbal recommendations in this regard which are not binding for the FBR or Finance Ministry” Nisar Muhammad Khan added.
He further said that capital of billions of dollars had been transferred abroad but private commercial banks did not share required data with FBR to ascertain exact volume of transacted money as well as its impacts on the national economy.
Therefore, he suggested amendment in the concerned law for an effective implementation to bind banks to abide by the orders of FBR. The amendment in the 1992 act is also imperative because it does not authorize any institution to look into the accounts of any account holder.
