Revision in valuation of Real Estate asset under Amnesty Scheme
Under Amnesty Scheme Revision, government planned to revise the excessive valuation of Real Estate asset, in particular immovable properties. Federal Board of Revenue has not formulated any general scheme for Real Estate sector including movable & immovable assets. However, several incentives are speculated for this particular sector of construction.
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In order to promote investment, the government is not binding any declaration of investment source on legalization of real estate assets that are specifically purchased in 2019. Special relief package is also announced for the construction sector. It is envisaged to enhance government capacity to build low-cost residential scheme. Almost 90% tax reduction is also offered for these programs, both for builders & developers.
According to news sources, following incentives are speculated to offer:
- National (central) jurisdiction of builders & developers
- Simplified return forms
- Project basis income computation
- Dispute resolution committee
- No obligation for builders & developers to act as ‘withholding agent’
- PKR 20 per Sq. Ft. tax for for commercial buildings in Lahore, Karachi, Islamabad, Hyderabad, Sukkur, Faisalabad, Rawalpindi, Gujranwala, Peshawar, Sahiwal, Mardan, Abbottabad, Quetta & other unspecified urban areas
- For low-cost housing schemes, the tax rate will reduced by 90%
- The requirement of independent certification from the National Engineering Services Pakistan (NESPAK) and a tax rate of PKR 210 per sq ft for commercial developers.