ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new requirement in the proposed income tax return form for individuals, set to take effect from July 1, 2025. Taxpayers will be asked to declare the “Fair Market Value of Property” during the buying or selling of immovable properties.
Muhammad Ahsan Malik, a real estate expert, expressed concerns about the new provision, describing it as unnecessary. He noted that taxpayers are already required to declare the purchase value of properties in their income tax returns, and adding a new declaration for the fair market value could lead to confusion. He questioned the FBR’s lack of trust in taxpayers, pointing out that the declaration process already includes the property’s value.
Malik also criticized the treatment of fresh filers, particularly in relation to the taxation on property transactions. He stated that fresh filers should not be treated as late filers and face higher tax rates on the sale and purchase of immovable properties.
Additionally, Malik raised concerns about overseas Pakistanis, who have not received any tax relief in the 2025-26 budget. He pointed out that overseas Pakistanis still need to obtain approval from the concerned Commissioner Inland Revenue to verify their non-resident status for tax purposes. Instead of providing relief, the government has added another layer of bureaucracy, requiring a certificate from the Commissioner.
Malik further alleged that obtaining the necessary certificate from the Commissioner Inland Revenue would be difficult for overseas Pakistanis without paying a bribe.
