The government is likely to introduce new property evaluation method from the next financial year to stop the massive tax evasion in the property registration and transfer.
An official source said the Federal Board of Revenue (FBR) is finalising the scheme which will be implemented with the consent of the provincial governments in all the urban areas from the next financial year.
International financial institutions have tasked the government to introduce a scheme in the budget to stop unknown property transactions. It will help increase tax revenue. The scheme will help curb the Benami (fake owner) property registration and will help introduce a culture of declaration of assets, the source added.
Currently a Rs 100 million property can be registered by declaring it worth Rs 10 million. This not only leads to a massive loss in tax revenue but also makes even the white money black. The scheme is estimated to generate more than Rs 100 billion for the national exchequer in the next fiscal year.
Under the scheme the government will be allowed to purchase an under assessed property. Such a scheme introduced in India nearly ended under evaluation of the urban property and leading to handsome revenue growth.
