Ban on Rs10m property transaction: Proposed changes to tax laws paused

ISLAMABAD: The move by the Federal Board of Revenue (FBR) to slap restrictions on transaction of property of over Rs10 million for ineligible persons has lost its steam when proposed changes to tax laws were stopped.

Now the approval of the Tax Laws Amendment Bill would be considered by the National Assembly’s Standing Committee on Finance and Revenues, after two months when the FBR develops an online system for allowing voluntary changes in the filed income tax returns or wealth statement for converting from ineligible person to eligible person.

Under the proposed tax laws amendment bill, the person would have to demonstrate his eligibility for showing its worth of assets to the tune of Rs10 million to purchase a plot worth Rs13 million. For such a person, the FBR will develop an App whereby the person will be able to amend enhancing the limit to declare more assets to qualify for eligibility criteria.

This online system would be devised by the FBR in close liaison with National Database and Registration Authority (Nadra) and provincial excise departments. Now it seems that these proposed amendments might become part of the next finance bill expected to be introduced in the next budget for 2025-26. When the National Assembly Standing Committee on Finance and Revenues continued its deliberations to consider recommendations of its sub-committee here at the Parliament House, Opposition Leader Omar Ayub boycotted the proceedings while raising the issue of non production of a PTI MNA despite production order. When the Panel Chairman Naveed Qamar refused to allow him to talk, he along with other PTI MNAs boycotted the proceedings.

Finally, the NA panel deferred approval of new Section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill 2024 till the FBR places technological changes in its online systems.