Islamabad: The Federal Board of Revenue (FBR) has announced its decision to implement new rules – as part of the Financial Action Task Force (FATF)’s recommendations – in an effort to regularise jewellery and real estate transactions in the country, according to news sources.
To this effect, the taxation agency will scrutinise gems, precious jewellery and property transactions to curb money-laundering and combating terror financing. Moreover, it is expected to act as a focal organization to regulate income tax consultants.
For Urdu: ایف بی آر کا ایف اے ٹی ایف کی تجاویز کے مطابق پراپرٹی اور جیولری ٹرانزیکشن پر نئے قوانین لاگو کرنے کا اعلان
Jewellers across the country will be required to document their transactions. These records will be shared with FBR through a comprehensive system, following the issuance of a notification to this effect. These individuals will also be asked to report any huge transactions (bulk sale/purchase of precious metals and stones). Presently, FBR has details of some 30,000 jewellers across Pakistan.
In the housing sector, the recommended rules will be applicable to sub-registrar offices or housing authorities, where property exchanges are finalised. The real estate agents are excluded from the implementation of these rules.
According to reports, the government is also mulling to convince provincial authorities to revise the valuation table rates/DC rates, making them closer to the market value. An FBR official stated that the tax rates would be decreased to balance the tax impact of this attempt.
Furthermore, the law division and the Securities and Exchange Commission of Pakistan (SECP) will monitor the services of chartered accountants and lawyers. The FBR spokesperson and Member Policy Dr Hamid Ateeq said that the taxation agency had forwarded the new regulations to the law division for vetting.