Finally Tax Amnesty For Real Estate
A subcommittee of the National Assembly Standing Committee on Finance formalized its recommendations after holding discussions with representatives of the real estate sector. Before holding the meeting, committee members took the input of Finance Minister Ishaq Dar and Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan. The subcommittee is working on a Tax amnesty for the real estate sector after a huge number of complains from developers and real estate agents.
The proposal finalized will allow investors to declare their hidden assets by paying a nominal rate of only 3%. This will be charged at the difference between the DC value at the time of purchase and present FBR value. The complete details are still a bit vague, however it is expected to clear after the bill is presented to the Parliament.
The tax amnesty will only be valid on properties purchased before 1st July 2016. It is still to be seen if the scheme will be launched for a certain duration or will be applicable for unlimited time period.
Effects of Tax amnesty on Real Estate
How will this effect the real estate market?. Will it help the property market to shift to high tide again?. This is yet to be seen and can only be evaluated after all the details are fully known. In general however this step will be welcomed by the real estate community and may give some breathing space to the property market.
This Tax amnesty scheme will take a month before it is finalized and all details are known.