Non-filers now allowed to buy property up to 1 crore PKR
A milestone policy has been initiated by the Federal Board of Revenue (FBR), whereby non-filers can own property worth up to PKR 1 crore (10 million). This policy change is expected to encourage investment in real estate, increase the transparency of the market, and revive even more the property sector of Pakistan.
Now What Does It Mean for You?
- Greater Investment Options: Here is your opportunity, a non-filer, to invest in real estate-avoiding restrictions that usually come with such transactions.
- Transparent Market: The FBR aims towards eliminating black money in the real estate sector, ensuring a cleaner and more regulated market environment.
- Value Addition for the Property Sector: The possibility of a great surplus increased in property transactions is expected to revitalize the market.
Policy Backdrop:
This was approved by the National Assembly Standing Committee on Finance and Revenue in a meeting held under MNA Naveed Qamar. The committee has discussed the Tax Laws (Amendment) Bill 2024 and has set up a sub-committee to work with the Association of Builders and Developers (ABAD) to decide on eligibility criteria and timelines for non-filers.
According to State Minister for Finance Ali Pervaiz Malik, such an act will bring in more people into the tax fold, undeterred by problems ignored for decades. The law will permit non-filers to buy property worth up to PKR 1 crore, while large investments will have limitations as well.
Apart from this, the government has decided to introduce 1,600 new auditors to boost tax enforcement measures and even help fight against the existence of black money in the real estate market. There are some mentions of corruption and lack of capacity, but the government is now all set to do it for improving the financial health of the country.
Future Challenges:
While this is generally seen as a positive development, concerns still remain regarding corruption risks and enforcement challenges. The subcommittee will convene on a regular basis for the addressing of industry needs of policy optimization.
Conclusions:
The policy modification by the FBR has marked a historic change of pattern in the real estate environment in Pakistan. The government is trying to increase the tax net while allowing non-filers to purchase property and control transactions but with an eye on economic growth.
