Islamabad, February 16, 2025 – Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue (FBR), has categorically denied any plans to introduce a tax amnesty scheme for property transactions.
His remarks came during a televised interview where he addressed growing speculation regarding potential relaxations in income disclosure for real estate investments.
Speaking on the matter, the FBR chief emphasized, “There is no discussion at any level to grant any relaxation in the disclosure of income for the purchase of immovable property. Allowing such a relaxation would essentially amount to an amnesty.” He further clarified that this issue had not been brought up during the meetings of the Prime Minister’s task force.
Despite the FBR chairman’s statement, reports suggest that the task force has proposed a waiver of wealth reconciliation requirements for investments in the real estate and construction sectors, up to Rs 50 million. This recommendation has raised concerns about indirectly introducing an amnesty for property transactions.
The FBR chairman also acknowledged the challenges posed by the current high tax rates on property transactions. He confirmed that the FBR is actively reviewing the possibility of reducing advance tax rates on the sale and purchase of immovable properties to encourage transparency and compliance.
The task force, in its recommendations to the government, has advocated for several key policy changes. These include the potential abolition of Section 7E of the Income Tax Ordinance, 2001, and the removal of the Capital Value Tax (CVT) in Islamabad. The proposed measures aim to simplify the tax regime and promote investment in the real estate sector.
Additionally, the task force has suggested updating property valuations every three years to better align with market rates. It also recommended exemptions from transaction taxes for specific categories, such as low-cost housing projects, government-allocated plots, and first-time homebuyers.
The FBR’s stance remains firm on rejecting any form of amnesty for property transactions, while continuing to explore ways to streamline taxation policies and foster growth in the real estate sector. The chairman reiterated that the FBR’s primary objective is to enhance transparency and broaden the tax base without resorting to amnesty schemes.