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FBR is collecting property investment details, 2014-17

FBR is collecting property investment details, 2014-17

FBR, Federal Board of Revenue has started to collect the information about the investments in Pakistan real estate sector from 2014 to 2017. FBR had instructed all related departments including the provincial revenue departments to provide the details of all taxes including the Capital Value Tax, CVT. FBR will also collect the information about the investors who have invested in reality sector during 2014-17. FBR will also prepare a data base about the taxes related to Real Estate Sector. As FBR is collecting property investment details, let’s see its impact on reality sector.

Purpose of collecting data about reality sector investments

Real estate sector is notorious for parking the ill-gotten or black money. Many people invest in reality sector to whiten the black money. Pakistan has shadow economy which as per many experts is greater than the real economy. The government just wants to bring the shadow economy into tax net. Greater part of shadow economy is based on the reality sector. FBR is now regulating the reality sector by getting the information about all tax collection and also the details of the investors. ASSETS BEYOND MEANS is the real issue at the moment.

Impact on real estate sector

Ironically, Pakistan reality sector is alcoholic of black money. The huge influx of black money into reality sector has abnormally increased the property prices. High property prices are the main cause of declining home ownership in Pakistan. But prices are already falling due to Panama Case Decision and recent actions of FBR will further discourage the black money investment in Pakistan reality sector. Without investments, property prices will fall as low investment is low price. This is the good news for honest tax payers as they will buy the properties at much affordable rates.

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8 Comments

    • Ali
      Yes as prices are falling so its ideal to wait. First let the prices to bottom out.
      It will help you to buy properties at low price.
      DHA Karachi is hit hard by crackdown on black money.
      More price fall is on the way.

      Reply
  1. Great step took by FBR for citizen of pakistan. These thugs have made impossible to buy property even for living. This action will results decrease in prices and people are able to purchase houses. Previously this issue was also highlighted in media and was reported in FBR.

    Reply
    • ARY NEWS
      Black money is the biggest issue in Pakistan. It has brought unbalance in society. Rich are getting richer and poor even more poorer.
      Crackdown on black money has blocked investment in real estate sector due to which property prices are falling. Prices are already 25% down but more price fall is on the way.
      NO ASSETS BEYOND MEANS. All properties bought with illegal means should be confiscated.

      Reply
  2. A very positive thing seen after a long time. FBR to take action against these maafia Propery prices in pakistan are too high that even a middle class person cannot afford a normal house for his family. This issue was previously reported many times and few action were seen. Lets hope that this might continue for a long period.

    Reply
  3. Nazir ahmed

    on   said 

    Thanks for blog update. Allah encourage FBR to take action against maafia. However, propery prices in pakistan un beleivable and honest tax payers are in tension and can not buy any single flat or home with white money, black money is dominant on proprty area . If FBR honestly will take action against these maafia or non tax payers, the property prices will be declining In Sha Allah…

    Reply
    • Nazir Ahmed
      Yes indeed this is a good news for all the honest tax payers. Due to huge influx of black money into reality sector, property prices are abnormally high and people cannot buy homes. The tax record collection by FBR will definitely block money from reality sector which will result in low price.
      Low investment in reality sector = Low demand
      Low property demand = High stock
      High stock + low demand = Low property price
      This is just the start of the end. Hopefully in future we will see properties for living not for money hoarding.

      Reply

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