Latest news with #TaxLaws(Amendment)Bill2024
Express Tribune
30-04-2025
- Business
- Express Tribune
NA panel dilutes tax bill 2024
The National Assembly Standing Committee on Finance on Wednesday adopted a softer version of a bill to ban purchases of cars, investment in stocks and properties beyond a certain value by ineligible persons but linked its approval by the National Assembly with budget. Headed by PPPP MNA Syed Naveed Qamar, the committee instructed that the modified version of the Tax Laws (Amendment) Bill 2024 be included in the Finance Bill 2025. The committee further decided that the modified bill's approval will be secured from the National Assembly along with next fiscal year's budget. Unlike in the past when the National Assembly standing committee on Finance was not allowed to discuss the Finance Bill, this time the committee would go through the new taxation proposals after changes in the rules. The modified version is quite different from the original bill proposed by the Federal Board of Revenue. It exempts a major segment of the society from the applicability of the law. The definition of the eligible persons has been expanded and the list of the assets that can be used to justify the purchase has been enlarged. The committee decision came on the recommendation of a sub-committee in which PTI's Usama Mela and MNA Jawed Hanif played important roles. The government had introduced the Tax Laws Amendment Bill in the National Assembly to ban economic transactions by the ineligible persons – the ones who do not have sufficient declared cash equivalent resources to buy a property. According to the proposed legal amendment, a person cannot buy a property until the assets declared in his last year's tax returns are sufficient for the purchase or the person will submit a new statement to disclose the source of buying the property. The FBR has not yet developed a real time safe technological solution where the buyer is required to file the declaration. The FBR had proposed Section 114C as an additional layer of declaration and the FBR still had the legal authority to verify those assets, once the purchaser submitted its income and wealth statement every year. There are two significant amendments by the standing committee. According to a change in the proposed Section 114C, the new law cannot be implemented without determining the value threshold by the federal government. The "property transactions conducted by common citizens and the lower- and middle-income class, particularly first-time buyers or those purchasing their primary residential property, are not impacted" by the new legislation. The definition of the eligible persons has also been expanded by including the immediate family members' assets to justify the purchase. Importantly, the definition of "sufficient resources" has also been enlarged by adding local and foreign currencies, fair market value of gold, net realised value of stocks, bonds, receivables or any other cash equivalent assets as may be prescribed". The barter transactions have also been allowed to settle the value of one plot against another plot. In the past, the government had also imposed withholding taxes to encourage people to become tax filers. But people have been filing the tax returns just for the sake of undertaking a property transaction and the FBR seemed satisfied with only getting an extra amount of taxation instead of going after them for not fully paying their taxes on actual incomes. It was also decided that even if Section 114C was passed in the budget; it would not come into effect until the exemption value was notified by the federal government. The committee also amended the clause related to the immediate family members and introduced the definition of dependent children instead of using the terms son and daughter. The non-resident Pakistanis and the listed companies will be exempted from filing the additional information disclosure. Some of the members of the committee had in the past expressed reservations about relaxing these definitions. The committee's decision will exclude 95% people from the purview of the new amendments and it means that there can never be true documentation in Pakistan," said MNA Jawed Hanif Khan in February this year. ZTBL turns around The National Assembly expressed reservations against the government's decision to sell the Zarai Taraqiati Bank Limited despite it having been turned around and being the only specialised bank that serves the under-privileged farming community. The committee decided to raise the matter of the ZTBL privatisation in the National Assembly to put pressure on the government to drop the transaction. The ZTBL's listing in the privatisation programme has stopped the progress on the new information technology programmes and we cannot even hire a person despite pressing needs, the ZTBL president Tahir Yaqoob Bhatti informed the standing committee. Being a three-time former privatisation minister I can sense that the bank's privatization cannot happen in the next two years and there is no rationale to stop the important work at the bank, remarked Syed Naveed Qamar.
Time Business News
28-04-2025
- Business
- Time Business News
Anosh Ahmed Reveals Key Reforms to Revive Pakistan's Property Market
For years, Pakistan's real estate sector stood as a pillar of economic strength and stability. With the constant depreciation of the Pakistani rupee against the US dollar, both local and overseas Pakistanis turned to property investment as a secure way to protect their wealth. Unlike bank savings that were vulnerable to inflation, real estate offered not just stability but also attractive returns. However, in recent times, the sector has faced multiple setbacks, threatening its once unshakeable appeal. One of the biggest obstacles has been the sharp increase in interest rates. When rates peaked at 22%, it became nearly impossible for investors to finance property purchases through bank loans. Although the government has since reduced rates to 12%, new challenges have emerged. As Pakistan negotiates a critical $1 billion tranche from the International Monetary Fund (IMF), the IMF has demanded a broader tax net—including the real estate and retail sectors. This move has raised serious concerns among developers and investors, who fear that heavy taxation could drive investment to other countries like the UAE. At the center of these discussions is the Tax Laws (Amendment) Bill 2024, currently under review by the National Assembly's Finance and Revenue Committee. While taxation is necessary for fiscal stability, experts warn that poorly designed policies could further weaken the sector. Dr. Anosh Ahmed, a renowned Pakistani-American physician, entrepreneur, and philanthropist, offers strategic insights into revitalizing Pakistan's real estate industry. Having successfully expanded his businesses into the U.S. and Dubai, Dr. Anosh Ahmed has firsthand experience with what makes a real estate market thrive. According to Anosh Ahmed, one of Dubai's most significant advantages is its favorable tax environment. With zero corporate and income tax on many industries, Dubai has created an irresistible investment climate. However, Dr. Anosh points out that tax incentives are just one piece of the puzzle. 'Dubai's true strength lies in its complete support system—world-class airports, seaports, and modern business hubs ensure businesses can operate without barriers,' he explains. Another critical factor highlighted by Anosh Ahmed is regulatory transparency. Investors thrive in environments where policies are consistent and predictable. He stresses, 'Markets flourish where investors feel protected. Transparency, legal security, and ease of doing business must be Pakistan's top priorities.' Dr. Anosh warns that unpredictability and frequent regulatory changes scare investors away, making long-term projects difficult. By creating a climate of trust and policy continuity, Pakistan can rebuild investor confidence. Dr. Anosh emphasizes that robust infrastructure is fundamental to economic growth. Roads, public transport, energy supply, and digital connectivity directly influence a country's investment appeal. 'Dubai's seamless infrastructure has been key to its success. Pakistan must prioritize similar developments if it hopes to attract global investors,' Dr. Anosh advises. The real estate sector acts as a powerful economic engine, creating jobs and stimulating demand across multiple industries. Dr. Anosh suggests the government offer incentives such as tax breaks for new development projects and streamlined approval processes to breathe new life into the sector. By doing so, Pakistan can generate widespread economic activity while attracting both local and foreign investors. Dr. Anosh Ahmed also advocates for integrating technology into the real estate sector. He points to the success of digital platforms in the U.S. that have simplified property transactions and increased market transparency. 'Implementing online property registries, automated approval systems, and blockchain-based land records can eliminate corruption and bureaucracy in Pakistan,' he proposes. Despite the existing challenges, Anosh Ahmed remains optimistic about Pakistan's future. With a youthful population, abundant natural resources, and a growing middle class, Pakistan holds the ingredients for remarkable economic success. However, Dr. Anosh cautions that timely action is critical. Delays in reform could result in capital flowing to more favorable markets like the UAE. 'Countries that prioritize investor-friendly policies grow faster. Pakistan must act quickly to secure its place in the global investment landscape,' he urges. Pakistan stands at a crossroads. By implementing bold reforms focused on transparency, infrastructure, and investor confidence, it can revive its real estate sector and unlock massive economic potential. Following the advice and insights of experienced leaders like Anosh Ahmed, Pakistan can transform challenges into opportunities, ushering in a new era of growth and prosperity for its real estate market—and for the nation as a whole. TIME BUSINESS NEWS
