Rs12,500 bn black money to be whitened

ISLAMABAD: President Mamnoon Hussain will most probably sign an ordinance containing the agreed points between the FBR and property dealers.

According to a copy of the ordinance, named the Income Tax Amend Ord-II 2016, available with The News, the market rate of property will be ascertained every year with mutual consultation. If the property is purchased with black money, the tax will be levied as per Section 111 of the Income Tax Ord 2001. The ordinance will include the enabling provision for authorizing the FBR. Finance Minister Ishaq Dar will later present the bill in the National Assembly for discussion and approval.

The ordinance will bring billions of rupees revenue to the national exchequer and cut black money by 35 percent of GDP and will boost the formal economy by $120 billion (Rs12,500 billion) while the stock market index has already soared by 1,500 points. Finance minister Ishaq Dar and Revenue Advisor Haroon Akhtar have given the credit for the move to FBR Chairman Nisar Khan, FPCCI President Abdul Rauf Aalam and Developers and Builders Association President Ch Naseer Ahmad.