The Federal Board of Revenue (FBR) has opposed granting relief to the real estate sector due to strict conditions imposed by the International Monetary Fund (IMF), leading to the postponement of the proposed incentive package.
The FBR has refused to provide subsidies to the construction sector or offer amnesty for undeclared income, further delaying the decision on the sector’s proposed tax relief package.
A task force on the housing sector had recommended several measures, including allowing first-time home buyers to purchase property worth up to Rs. 50 million without disclosing their source of income. Other recommendations included reducing property transaction taxes and eliminating the 3% Federal Excise Duty (FED).
It is important to note that under Pakistan’s agreement with the IMF, all forms of tax amnesty or exemptions are strictly prohibited.
