IT has been proposed in the budget 2018-2019 that the Federal Bureau of Revenue`s (FBR`s) valuations on immovable property be abolished.
It is believed that quite a substantial amount of untaxed money is parl(ed in the realestate sector.In order to deter underdeclaration and consequentloss of revenue, it is proposed that the FBR may hold arightto purchase any property within six months of the registration by paying a certain amount over and above the declared value which may be 100pc in the fiscal year 2018-2019.
A very good measure, but the milliondollar question is, what is the modus operandi for purchasing such immovable properties? Will a separate regulatory authority be established to monitor and execute the FBR`s orders? Where from funds would be allocated/generated for purchasing such properties? Is the government planning to establish a property bank? And, finally, what about lengthy litigations, and legal expenses so incurred on such sale and purchase of property? Some brainstorming needs to be done, to work out the modalities, to make such an ambitious plan viable and successful if the government is really serious about plowing back untaxed money parked in real estate.
