Revision of Valuation Table Possible for Real Estate Sector
Islamabad: According to the news sources, the government of Pakistan is considering revising the excessive valuation of immovable property for the real estate sector along with extending the amnesty scheme.
As per reports, the Federal Board of Revenue (FBR) has not yet been engaged to formulate a general amnesty scheme covering all types of movable and immovable properties owned by locals or expatriates. Prime Minister Imran Khan has already announced incentives for the real estate sector in the relief package, the details for which are expected to be rolled out soon.
According to the sources, the government may also waive off the condition of the revealing source of investment on the legalization of real estate assets purchased during last year to encourage investment and ensure the circulation of money.
The government is also considering providing tax relief and special incentives to businesses associated with the construction sector. The relief package will support the government’s low-cost housing program. A simple and final tax regime (FTR) is also finalized for the developers and builders, which offers as much as a 90% reduction in tax for low-cost housing schemes.
ilaan.com has learned that the following incentives are likely to be offered:
- Simplified return and filing of taxes
- Dispute resolution committee
- Central jurisdiction of builders and developers
- Income computation on a project basis
- Builders and developers no longer required to act as ‘withholding agent’
- For commercial buildings in Lahore, Karachi, Islamabad, Hyderabad, Sukkur, Faisalabad, Rawalpindi, Gujranwala, Peshawar, Sahiwal, Mardan, Abbottabad, Quetta, and other unspecified urban areas, the tax rate will be PKR 20 per sq ft
- For low-cost housing schemes, the tax rate will be slashed by 90%
- The requirement of independent certification from the National Engineering Services Pakistan (NESPAK) and a tax rate of PKR 210 per sq ft for commercial developers.