Karachi, October 2, 2023 – The Federal Board of Revenue (FBR) has taken decisive action against property builders and developers who failed to meet project completion deadlines set under the amnesty scheme.
Official sources revealed that the tax authorities have decided to reopen cases of builders and developers who availed of the amnesty scheme but did not fulfill their commitments to complete new projects or finalize existing ones by September 30, 2023.
The previous government introduced the amnesty scheme as a means to promote the construction industry and address housing shortages in the country. Under Section 100D of the Income Tax Ordinance, 2001, builders and developers were granted significant tax concessions, including exemptions from source questioning under Section 111 of the same ordinance.
However, the amnesty scheme came with strict conditions, mandating that new projects must be completed by September 30, 2023, or existing incomplete projects must also be finished by the same date.
It is worth noting that the FBR had already extended the deadline by one year from September 30, 2022, providing builders and developers with additional time to meet their obligations.
A meeting held on Monday between the members of the Association of Builders and Developers of Pakistan (ABAD) and an FBR team, led by Member Policy, addressed concerns related to the amnesty scheme.
ABAD members appealed to the FBR to further extend the project completion deadline. However, the FBR member expressed regret, citing legal constraints that prevented an extension.
Additionally, ABAD members raised concerns about Section 7E of the Income Tax Ordinance, 2001, which deals with deemed income. They requested that the same facility available in Punjab under this section should be extended nationwide. The FBR member explained that such changes required legislative action as they were part of the existing statute.
The FBR’s decision to open cases against builders and developers who missed the project completion deadlines underscores the government’s commitment to maintaining the integrity of the amnesty scheme while encouraging timely completion of construction projects in Pakistan.