Review of tax laws bill: NA panel cancels 3rd meeting due to FBR chairman’s absence

ISLAMABAD: The sub-committee of the National Assembly Standing Committee on Finance cancelled its third meeting at the Federal Board of Revenue (FBR) Headquarters on review of “The Tax Laws (Amendment) Bill, 2024” due to absence of the FBR chairman in the meeting.

The meeting was scheduled to be held on Friday at the FBR House but it was postponed next week, following non-availability of board room at third floor of the FBR Headquarters.

Arif Habib, chairman of Arif Habib Dolmen REIT Management Limited (AHDRML) and representatives of the Association of Builders and Developers of Pakistan (ABAD) joined online.

NA panel says concerned at some clauses of Tax Laws (Amendment) Bill

Before start of the meeting, when Chairman of the sub-committee Bilal Azhar Kayani entered the Skylight Conference Arena at eighth floor of the FBR House, he inquired about the FBR chairman. “If the FBR is not ready to give us meeting room at third floor we will not convene meeting”, he told FBR officials.

Kayani went on saying how we can convene meeting without the FBR chairman. The meeting is postponed tell next week, the Chairman of the sub-committee stated.

It is important to mention that during the last meeting, Dr Najeeb Memon, FBR’s Member Policy stated that the FBR is considering allowing property purchases of up to Rs10 million without first disclosing the source of income, but we have not yet made a final decision.

Real estate sector had 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.

According to the original proposal awaiting National Assembly’s approval, no one can buy property worth more than 130 per cent of the liquid assets declared in the previous tax returns. If the value of the property exceeds this threshold, the buyer must first explain the source, states the proposal.

The National Assembly Standing Committee on Finance has set up a sub-committee, chaired by Bilal Azhar Kayani, to recommend an exemption threshold. The sub-committee held its another meeting on Friday.

Real estate experts have recommended that the source of investment in real estate transactions should not be asked upto Rs50 million. The facility should be allowed for atleast one year period which would result in substantial registrations in the property sector.

The real estate representative apprehended that “The Tax Laws (Amendment) Bill, 2024” would have serious implications on the real estate sector and the concerned tax officials would have sweeping powers to deal with the real estate sector.

The real estate representative stated that the real estate has a major role in the development of the economy.

Real estate sector is paying around 115 per cent tax and the “The Tax Laws (Amendment) Bill, 2024” may hamper investment in the real estate sector.

The investment in the real estate sector has been diverted to Dubai. The information of filers be taken at the time of registration of properties. The government should take measures to encourage corporate developers.

The representatives of the Association of Builders and Developers of Pakistan (ABAD) also made some recommendations before the sub-committee.

Copyright Business Recorder, 2025