FBR Unveils New Policy for Non-Filers in Property Market

New Policy For Non-Filers

In a move to revitalize the real estate sector, the Federal Board of Revenue (FBR) has introduced a new policy allowing non-filers to purchase property worth up to Rs. 1 crore without inquiries into their source of funds. This initiative aims to stimulate market activity and ease participation for smaller investors. During a session of the Finance Committee of the National Assembly, the FBR Chairman announced this significant policy shift. Under the revised regulations, non-filers can make property transactions up to the specified limit through cash payments or banking channels without undergoing scrutiny of their financial resources.

This change comes as a response to challenges stemming from stringent tax laws and procedural barriers implemented in recent years. While the Finance Act 2024 aimed to enhance tax compliance through measures like late filing penalties, it unintentionally contributed to a decline in property transactions. High taxes and rigid checks discouraged investors, resulting in a slump in real estate activity and reduced government revenue.

The newly announced policy seeks to reverse this trend by providing non-filers the opportunity to engage in smaller-scale property transactions. It is expected to revive investor confidence, stimulate economic activity, and increase tax revenues. However, for property purchases exceeding Rs. 1 crore, the higher non-filer tax rates 12% on purchases and 10% on sales will remain in effect. By introducing this balanced approach, the FBR aims to rejuvenate Pakistan’s real estate market while ensuring revenue growth and offering relief to smaller buyers and investors. This strategic move underscores the government’s commitment to fostering economic development while addressing industry concerns.