For recording the shadow economy, the Tax Reforms Commission (TRC) has sent a full-fledged plan to the Federal Board of Revenue (FBR) which has suggested to simplify tax laws and curb the use of cash. TRC has also suggested the formation of a high-level committee to start a specific plan and it would be responsible for monitoring and analyzing it.
By enforcing this action plan for three years, it is expected that the size of the shadow economy could be decreased by almost 30pc. The biggest beneficiary according to the source has been the real estate segment, which has been able to attract a fair amount of untaxed money and tends to go unrecorded. As per the source, the FBR is planning to make modifications to the property valuation table which would allow to extract more revenue from the real estate segment. The modifications in the property valuation table by the FBR will see an increase too. This move would allow to record this untaxed money lying in the real estate sector. And the source also mentioned “We have achieved significant progress by taxing the black money landed in real estate in the current fiscal year.”
