FBR Denied Applying Fresh Tax Amnesty Scheme For Construction Sector
The Federal Board of Revenue (FBR) has denied the idea of a fresh tax amnesty scheme for contractors to stimulate the construction sector, citing the FBR’s inability to overlook yearly revenue collections of Rs 200 billion.
During the Senate Standing Committee on Finance meeting, the proposal stated that to decrease withholding tax on contractors from 7.5 percent to 1 percent, and that to promote or generate a fresh general amnesty scheme for construction sector.
They further added that it would boost the construction sector because the government had previously unveiled the PM’s Construction Package and requested a three-month extension from the IMF After the meeting, the Chairman of the FBR told our news reporter that the government has no intension to apply such amnesty scheme to anyone. According to him, the FBR was instructed to lower contractor tax from 7.5 percent to 1%, but the government could not forsake the Rs 200 billion tax revenue.
During the Senate panel meeting, the FBR also stated that the value rates of properties in 23 cities may be changed upwards in order to collect tax on profits up to Rs 5 million obtained within the allowed time limit of 4 years at the time of land disposal. Asim Ahmed, Chairman of the FBR, said that the valuation rate announced by the FBR was 70% of market value.
Earlier, representatives of real estate agents Ahsan Malik and Sardar Tahir told the meeting that the government amended the gain tax regime in July 2021, increasing the FBR and DC value rates. They also requested that the terms “adventurer” and “habitual buyer” of real estate be defined in tax legislation.