ISLAMABAD – A major update to income tax filing process, Federal Board of Revenue (FBR) introduced new requirement for individual taxpayers to declare the Fair Market Value (FMV) of immovable properties in all purchase and sale transactions.
The new regulations are part of proposed income tax return form for Tax Year 2025, effective from July 1, 2025. The decision triggered concern across real estate sector, which sees the move as burdensome and lacking in clarity.
Real estate people called the policy unnecessarily complex, arguing that asking for Fair Market Value in addition to the declared transaction value creates confusion and shows lack of trust in taxpayers. Buyers said market value serves no real purpose and only complicates process.
He also lamented tax treatment of newly registered filers, who are currently being taxed at higher rates on property transactions, the same as late or non-filers.
The concern is now for overseas Pakistanis, who continue to face hurdles in proving non-resident status to benefit from reduced tax rates on property transactions. He noted that non-residents are still required to obtain certification from a Commissioner of Inland Revenue to be eligible for exemptions. calling the process “impractical” and “open to exploitation.”
Members of real estate and tax community are urging FBR to simplify procedures and revise the new policies, especially for overseas Pakistanis who contribute billions in remittances to Pakistan’s economy.
