| Islamabad: The Federal Board of Revenue (FBR) is set to introduce a new wealth statement format, allowing the government to acquire properties that taxpayers undervalue in their declarations. According to sources, this change will require taxpayers to disclose not only the acquisition cost but also the Fair Market Value (FMV) of each asset they own.
Read: FBR sets eye on 2.8 mn new taxpayers to increase revenue by 1.6 tn
The move is part of the government’s broader effort to curb tax evasion, particularly related to real estate. By mandating the FMV disclosure, the FBR aims to capture the true worth of properties and assets, reflecting more accurately the increase in a taxpayer’s wealth. Importantly, if a taxpayer under-reports the value of their property, the government will now have the option to purchase the asset at the declared value.
Officials highlighted that this step is designed to address the widespread issue of taxpayers intentionally declaring lower property values to reduce their tax liabilities. By amending the laws, the FBR seeks to deter such practices by effectively turning low declarations into potential sales to the government.
The new format, once implemented, is expected to significantly improve asset transparency and tax collection. “This will help in recognizing the true value of assets and ensure the government is not deprived of its rightful revenue,” one source said, adding that the initiative could be a game changer in tightening tax compliance.
Read: FBR given deadline to revise valuation of immovable properties
The wealth statement amendments are seen as a key part of the government’s strategy to strengthen its fiscal base and improve revenue generation through more stringent enforcement. |
|
