Government Takes Major Step to Curb Tax Evasion in Real Estate Sector by Establishing Regulatory Authority

Islamabad, Pakistan:The government has taken a significant decision to combat tax evasion in the real estate sector, with preparations now complete to establish a regulatory authority for the industry. According to media reports, the newly established authority will be empowered to file cases against unregistered businesses operating in the sector and impose penalties for tax evasion.

The report stated that any individual engaged in real estate business who fails to register with the Real Estate Regulatory Authority will face fines ranging from Rs. 50,000 to Rs. 500,000. Furthermore, such individuals could also face imprisonment for up to 3 years.

In cases where an agent provides false information to the regulatory authority, their license will be revoked, and they may be fined between Rs. 200,000 and Rs. 500,000. Additionally, if someone is found guilty of transferring property illegally, the authority will have the power to impose fines ranging from Rs. 500,000 to Rs. 1 million.

The authority will also have the power to levy fines ranging from Rs. 50,000 to Rs. 200,000 if any person fails to provide the necessary documents as required by the regulatory body.

This move comes in response to a request from the International Monetary Fund (IMF), which has called for the establishment of a regulatory authority in the real estate sector. Currently, the IMF delegation is in Pakistan for ongoing policy discussions, and once these negotiations are successfully concluded, Pakistan is expected to receive the second tranche of the $1.1 billion loan.