Islamabad:
In a surprising revelation, Pakistan’s Chief of Tax Inability to expand the Strait Base.
The president of the Federal Income Board (FBR), Langial Rashid, made the statement in his defense to stop economic transactions such as buying properties, cars or maintaining a bank account for non -eligible people, whether filters or non -filters.
“Only 12 people declared assets of more than RS10 billion in the last year, which is a great statement,” Langrial told the subcommittee of the Permanent Committee of the Assembly on the issue of restrictions proposed to the real estate sector.
The meeting was chaired by Bilal Azhar Kayani, member of the National Assembly (MNA) belonging to the Pakistan-Nawaz Muslim League (PML-N).
“Only 12 people with officially declared wealth of RS10 billion or more do not reflect the true wealth of Pakistani. There are hundreds of housing societies in Pakistan and many dozen around Islamabad and Rawalpindi,” FBB president continued.
India has more than 100 richest people with net assets in billions of dollars. The richest value in India is $ 3.3 billion, while its richest person, Mikesh Ambani’s net worth is $ 119.5 billion, according to Forbes.
“During the last 78 years, we have been managing the country with excuses that the measures to expand the tax base can undermine the economy and it is not just the responsibility of the FBR expanding the tax base and executing the country’s system.” The President FBR commented.
Langial emphasized that economic activities should have a link with people’s personal wealth.
The Government has proposed to interrupt the economic transactions of persons whose tax statements do not support such important purchases. There is also a proposal that only those people can buy property, whose declared assets can support such transactions. If the value of the declared asset is RS100, the buyer can buy a property of up to the value of up to RS130, according to the proposal.
The FBR should consider exempting the reconciliation of up to RS50 million assets, which will allow people to declare their assets, recommended Arif Habib. “The bill is very dangerous and leaves buyers and the property sellers at the mercy of people who are ready to exploit,” he added.
Habib also said that companies were severely affected in recent times and that people invested only in gold and dollars.
What is the need to introduce a proposal to stop the purchase of properties by non -eligible persons when people have the legal obligations of submitting their tax declarations on wealth and statements of wealth at the end of the fiscal year, said Kayani , the committee coordinator?
In the last fiscal year, a little less than 1.7 million property transactions were carried out and 93.7% of the transactions had a value of less than RS10 million, Langial said. He added that there were only 2.5% transactions that would be affected by the new legislation.
“Our goal is to aim at only 2.5% of homes,” Langial said. However, Ashfaq Tola, president of Tola Associates, a fiscal advisory firm, warned the FBR not to interrupt the system for the good of transactions of 41,801 or 2.5%.
The FBR should not take the entire real estate sector under the clouds for these few thousand transactions, he said. Tola added that if the FBR could not handle these 41,801 people without interrupting the entire system, then there was a serious being about the system’s capacity.
The FBR had shared the value summary of the 1.7 million property transactions during the last year. Only 3,250 transactions that had value of more than RS50 million were declared with the property registration authorities in the last year.
The real prices are much higher than the declared values of these properties at the time of the registration, said Mna Jawad Hanid Khan.
The FBR must first explain the results of the powers of blocking the SIM cards and disconnecting the electricity and gas connections before asking for new powers, said Mna Usama Ahmed Mela.
Langial said that taxes could not recover through normal means until the entire system changed, all FBR officers were honest and civil laws were reformed. He confessed that there were thousands of people who bought properties every year, were filingers but still did not reveal those assets in their returns.
“The decision to stop property transactions by not eligible people would open new money laundering roads from Pakistan,” said Mna Mna Mena Mobeen Arif. Langial replied that the FBR was aware of the fact that the housing sector had been affected and “the FBR has a role in it.”
To reverse the trend, he added, the government was seriously considering reducing taxes on property transactions, subject to certain approvals.
Dr. Hamid Atiq Sarwar, FBO member operations, said that during the first half of this fiscal year, 735,000 real estate transactions were carried out and of which 500,000 transactions were for non -filters. He said that after the purchase of asset audits did not help, since the success rate was only 3%.
“The proposals are no longer in the hands of the FBR and now it depends on the permanent committee what type of decision makes, Langial said.
The subcommittee would meet again on Thursday to propose a path to follow.
It arose during the discussion that the panel may recommend to the National Assembly that in the event that the value of the property was below RS10 million, there should be no requirement to first justify the source of buying the property.
