Karachi, January 18, 2025 – In a landmark move to bolster transparency and enhance tax compliance, the Sindh province has commenced real-time sharing of property transaction details with the Federal Board of Revenue (FBR).
This initiative, spearheaded by the Board of Revenue (BOR) Sindh, ensures that comprehensive data on property buyers and sellers is now directly accessible to the FBR.
Sources within the FBR have confirmed that the online streaming mechanism is now operational, providing the tax authority with instant access to information on immovable property transactions. “Through this system, the FBR receives real-time details of both buyers and sellers, including their tax filer status,” stated an official, speaking on condition of anonymity. This critical data enables the FBR to monitor high-value transactions and investigate the source of funds used for property purchases, particularly targeting non-filers and those evading taxes.
The property sector, often referred to as Pakistan’s largest undocumented industry, has long been a focal point of concern due to its significant role in the country’s grey economy. To address this, the FBR has intensified its crackdown on individuals with taxable income who remain outside the formal tax net. By leveraging the new data-sharing arrangement with Sindh, the FBR aims to identify and pursue such individuals more effectively.
As part of its broader strategy to formalize the real estate sector, the FBR has set strict thresholds for property transactions, mandating that payments exceeding a certain limit must be made through banking channels. This policy not only promotes transparency but also aids in curbing the flow of unregulated funds within the sector.
Recently, the FBR further strengthened its efforts by revising property valuations in Karachi, significantly increasing rates to align them more closely with market values. This move is expected to enhance revenue collection by minimizing discrepancies between declared and actual property prices.
The online sharing of property transaction data marks a significant step forward in the government’s efforts to integrate the real estate sector into the documented economy. By closing loopholes and monitoring transactions in real time, the FBR is poised to target tax evasion and bring more individuals into the tax net, ultimately strengthening Pakistan’s fiscal framework.