Money whitening plan permitted on property buy has reported black money worth Rs230 billion till end of the last monetary year, sources informed Pakistan Observer.
Unaccounted money has been whitened during December 2016 to June 2018. The government on December 02, 2016 through amendment to inserted a new section 236W to Income Tax Ordinance, 2001 and approved the immunity and allowed investments in immovable property to document their money at the rate of 3 percent.
The declaration of hidden income was also granted immunity from disclosing source of income.
As a result of this immunity the declaration of concealed income amounted to Rs80 billion during December 2016 – June 30, 2017. Further an amount of Rs150 billion was whitened under the scheme during July 01, 2017 – June 30, 2018.
The FBR collected Rs7 billion as tax revenue at the rate of three percent of the declared amount.
The sources said that the immunity was only allowed on the investment which was difference between provincial value and valuation table issued by the FBR. However, where the provincial value is greater than the FBR valuation, the immunity was applicable.
In the budget 2018/2019, the parliament withdrew the scheme and introduced new mechanism for property valuation and announced setting up a directorate of immovable properties in the FBR.