In a bid to curb tax evasion and promoting transparency in property transactions, the Federal Board of Revenue (FBR) has recently implemented a new law that mandates obtaining a No Objection Certificate (NOC) from the FBR prior to buying or selling property.
The introduction of this law aims to tackle the long-standing issue of black money within the real estate sector and to bolster the government’s revenue generation efforts.
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The FBR officials have expressed their intention to achieve the target of taxation by ensuring that all property transactions are accurately recorded and taxed appropriately.
Mukhtiar Hussain Thahim, Assistant Director at FBR, stated, “This law has been formulated by the Government of Pakistan with the aim of bringing non-compliant individuals into the tax net. Those who have been avoiding taxes will now be compelled to participate in the tax system, thereby enhancing the overall tax collection.”
One of the primary implications of this new law is that citizens planning to buy or sell property will now have to make a mandatory visit to their local FBR office to obtain the necessary NOC before proceeding with their transaction.
Additionally, the officials emphasize that this measure will not only increase revenue for the government but will also encourage non-filers to become tax filers.
Notably, the new law may require additional effort from citizens and real estate professionals.
