The Federal Board of Revenue (FBR) made two significant rulings that pertain to the real estate industry. The FBR has delayed the release of new immovable property assessment tables till next month.
In August 2023, the FBR was poised to publish higher valuations for immovable properties. These new values, however, would be chosen after consultation with committees that would be set up in each city by the end of the current month.
The FBR has also made the decision to include an online option for all people to apply for exemptions from or pay one percent tax under Section 7E on immovable assets in the “IRIS” upgraded system.
Taxpayers won’t need to go to the relevant Commissioner of Internal Revenue (FBR).
This will put an end to suspicions of corruption when asking the concerned Commissioner of Inland Revenue for exemption certificates.
The decisions were made during the meeting between the real estate industry and FBR Chairman Amjad Zubair Tiwana on Saturday at the FBR Headquarters.
It is significant to remember that, in accordance with section 7E of the Income Tax Ordinance, each seller of real estate was required to either submit an exemption certificate to the Commissioner of Internal Revenue or pay a 1 percent tax.