FBR to Launch Online Service for 1% Property Tax Fee and Exemption
On Saturday, the Federal Board of Revenue (FBR) made two significant decisions related to the real estate sector. According to sources, the FBR has delayed the release of new valuation tables for immovable properties until the following month.
Initially planned for August 2023, the new property values were to be established in collaboration with committees in each city, to be formed by the end of the current month.
Additionally, the FBR has opted to implement an online system within the updated “IRIS” platform. This system will allow all citizens to either claim exemptions or pay a one percent tax (under section 7E) for immovable properties. This online process eliminates the need for taxpayers to physically visit the Commissioner Inland Revenue (FBR), thereby addressing concerns about corruption when seeking exemption certificates.
These decisions were reached during a meeting between FBR Chairman Amjad Zubair Tiwana and representatives from the real estate sector at the FBR Headquarters on Saturday.
It’s important to note that, under section 7E of the Income Tax Ordinance, every seller of immovable property in Pakistan was required to obtain an exemption certificate from the Commissioner Inland Revenue or pay a one percent tax. This requirement applied to both income tax return filers and non-filers.
Previously, income tax return filers who were exempted from section 7E had to physically visit the relevant commissioner to obtain proof of exemption. However, the FBR is now poised to launch an online system for obtaining exemption certificates, thereby streamlining the process.