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August 14, 2020

Realtors flock to avail exemption from investment source probe

Business

August 14, 2020

ISLAMABAD: The government has received a rousing response from real estate builders and developers to its exemption from probe into source of investment against flat tax rate, the Federal Board of Revenue (FBR) said on Thursday.

The response of builders, developers and taxpayers on the construction industry package announced by the government is “very encouraging,” the FBR said in a statement.

So far, 40 projects have already been registered with the FBR, whereas 4,812 projects have prepared drafts for registration in the IRIS system.

Furthermore, one purchaser has also submitted a declaration to FBR whereas 279 purchasers have prepared drafts in the IRIS System.

“The response from the business community is highly encouraging and demonstrates people’s confidence on the initiative of giving boost to construction and housing sector that shall, in turn, translate in giving a significant jump to the economy,” the FBR said.

“The federal government, in an effort to ensure all possible facilitation for builders and developers desirous of availing the fixed tax scheme, has taken various special initiatives.”

Tax benefit scheme given by the government offers a lucrative package to both builders and developers and public at large who are planning to buy plots and new housing units. Subject to fulfillment of certain conditions in law, the FBR will not question source of funds of builders,

developers, and purchasers of housing units and plots.

Besides that, builders and developers falling under the scheme can avail benefit of payment of fixed tax as delineated in the Income Tax Ordinance 2001.

As a part of this effort, FBR created an online project registration system in May 2020 for facilitation of taxpayers.

Additionally, online support has also been made available through setting up of a dedicated web-page, step-by-step guide and video tutorials, a dedicated email address to facilitate correspondence between the policy wing of FBR and builders and developers seeking assistance, and a comprehensive list of answers to queries received from various quarters.

Moreover, an aggressive media campaign to date has been launched since June in order to inform and educate the general public.

In a bid to augment facilitation efforts, the FBR arranged a webinar in July with around 500 attendees.

The session included a presentation conducted by the FBR representatives on the key features of the scheme and the registration process.