The Federal Board of Revenue (FBR) has made the decision to raise property values by as much as 75%.
According to FBR sources, property valuations have been determined for 42 major cities across the nation, and the revised prices have been finalized.
It is anticipated that a notification regarding the new property valuations will be issued soon. The location and fair market value have been used to calculate the valuations.
The new property valuations for an additional 15 cities will be added to the list in the following phase.
Rashid Langrial, Chairman of the Federal Board of Revenue (FBR), issued a severe warning earlier this week, stating that widespread action against non-filers will begin after November 1.
On Thursday, Langrial disclosed to the media in Islamabad that more than four million income tax returns had been filed, which is a doubling of the number from last year.
He reiterated that the deadline to submit income tax returns is October 14 and stated, “There will be no extension in the deadline for submitting income tax returns.”
“We have complete data on non-filers, and action will begin on a large scale from November,” Langrial added. No tax evaders shall be spared, as directed by the prime minister.”
The FBR as of late chosen to force 15 limitations on charge defaulters, eliminating the non-filer classification. In the beginning, five key measures will be implemented, including restrictions on purchasing vehicles, opening current accounts, international travel, and investing in mutual funds.
In the meantime, Finance Minister Muhammad Aurangzeb had stated earlier on Thursday that tax collection holds significant promise. The country is the victim of tax evasion and fraud worth Rs3,400 billion.
The concrete area alone could produce an extra Rs18 billion in charges, the battery area could yield Rs11 billion, and the refreshment area faces a duty deficit of Rs11 billion.
He also mentioned that only 14% of the 300,000 manufacturers are registered, and the textile weaving industry has a tax shortfall of Rs18 billion. Excessive input tax claims cost the iron and steel industry Rs29 billion.
In addition, the Finance Minister recently disclosed that Pakistani large corporations commit a staggering Rs3.4 trillion annual sales tax fraud. Due to the fact that only 14% of the 300,000 manufacturers in the country are registered with the Federal Board of Revenue (FBR), this raises serious concerns regarding the efficiency of the country’s regulatory framework. Following the appointment of Chairman Rashid Langrial, the FBR discovered fraud totaling Rs227 billion in five major industries.
Despite benchmark rates of 4% to 7%, businesses have been claiming 25% of total sales as input tax adjustments. Only Rs3.1 trillion of the potential Rs6.5 trillion in sales tax revenue has been collected. There has been fraud totaling Rs29 billion in the steel industry, while excess claims of Rs18 billion and Rs11 billion were reported in the cement and battery industries, respectively. There were also alarming figures in the textile industry, with claims exceeding Rs169 billion.
Aurangzeb emphasized that sales tax fraud is a felony that carries severe penalties, including up to ten years in prison. In order to combat widespread tax evasion and restore the integrity of Pakistan’s tax system, the findings emphasize the urgent requirement for reforms and tighter enforcement.
