Govt to issue tax cards for property deals

June 28, 2014 - 12:00:00 am

ISLAMABAD: The Federal Board of Revenue (FBR) of Pakistan will issue manual taxpayers cards after July 1 to collect enhanced withholding tax on purchase of property from non-filers of income tax returns in fiscal year 2014-15, it was learnt. 

The FBR has estimated that it could collect Rs10bn through imposition of advance tax on purchase of property plots for filers and non-filers during 2014-15. There will be zero tax on purchase of property of up to Rs3m.

But where the value of immovable property is more than Rs3m, then there will be 1 percent advance tax for income tax return filers and 2 percent for non-filers.

To differentiate between filers and non-filers, the FBR has evolved a mechanism related to purchase of property plots under which the filers will have to show manual taxpayer card at the time of transfer of plots on their names.

On the basis of this manual card, the rate of tax will be discharged differently from filers and non-filers.

As the provincial registration authorities did not possess online system, the FBR decided to issue manual cards, informing the authorities about filing of tax returns in 2013-14 on the basis of which the advance tax on purchase of plots would be deducted.

“We have finalised this decision but its implementation might take couple of months as the FBR required some time to issue these manual taxpayers cards,” FBR’s official sources confirmed yesterday night.

Without issuing manual taxpayer card, this scheme will not be implemented but for time being the FBR is mulling over different options to collect its taxes fully from July 1, 2014.     INTERNEWS