Undervaluation, misdeclaration: Over 93.7pc of property deals fall short of Rs5m: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, Monday, shared that the level of undervaluation and misdeclaration in the real estate sector can be gauged from the data that shows that during 2023-24, over 93.7 percent of property transactions in Pakistan were below the amount of Rs5 million.

Real estate sector, Monday, recommended National Assembly Standing Committee on Finance and Revenue to amend “The Tax Laws (Amendment) Bill, 2024” for not asking source of investment on property transactions upto Rs50 million.

During the meeting of sub-committee of National Assembly Standing Committee on Finance held at the Federal Board of Revenue (FBR) Headquarters, here on Monday, FBR Chairman Langrial, said that “The Tax Laws (Amendment) Bill, 2024” would have impact on only 2.5 per cent people.

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However, 95 per cent households would not be affected by the proposed legislation to ban economic transactions of ineligible people and businesses rather these measures would help increase tax collection, as around Rs1.6 trillion missing gap exists in five per cent category compared to Rs140 billion in the rest of the 90-95 per cent.

He categorically said that the people investing in property sector have to disclose their source of investment, but we are trying to reduce transaction taxes on real estate sector.

The FBR chairman said that last year 1.695 million property transactions were carried out where 93 per cent transactions have value less than Rs5 million.

The immovable property transactions where taxable amount exceeds Rs50 million, the number of transactions were 3,250 (0.2 per cent) of the total transactions during 2023-24, the FBR chairman disclosed.

On the other hand, the immovable property transactions in 2023-24 where taxable amount is upto Rs5 million, the number of transactions were 1,589,328 (93.7 per cent) of the total transactions.

Copyright Business Recorder, 2025