Government Completes Preparations to Establish Real Estate Regulatory Authority to Curb Tax Evasion
The government has completed preparations to establish a Regulatory Authority in the real estate sector to combat theft and tax evasion. The establishment of the authority will allow for legal actions and punishments against unregistered individuals conducting business in this sector and engaging in tax fraud.
According to reports, the Real Estate Regulatory Authority will have the power to impose fines ranging from 50,000 to 500,000 rupees for failure to register. The authority will also have the authority to impose a sentence of up to 3 years of imprisonment.
Additionally, the Real Estate Regulatory Authority will have the power to cancel the license of agents found providing false information. Providing false information could result in fines ranging from 200,000 to 500,000 rupees. Furthermore, the authority may impose fines ranging from 500,000 to 1,000,000 rupees for incorrect property transfers. Failure to provide required documentation could lead to fines ranging from 50,000 to 200,000 rupees.
It is worth noting that the International Monetary Fund (IMF) has previously demanded the establishment of such a regulatory authority in this sector.
In another development, on Monday, FBR Chairman Rashid Langrial briefed the IMF on audit matters. The IMF delegation, led by Nathan Porter, also met with the Secretary of Finance.
The IMF delegation will begin policy discussions for the $7 billion loan program today. The talks will start with a meeting with Finance Minister Aurangzeb. Technical negotiations between Pakistan and the IMF are nearly complete, and the policy discussions are expected to last for about two weeks. Following the discussions, the review mission will present its recommendations to the IMF Executive Board.
The Executive Board will make a final decision by the end of this month or early April regarding the disbursement of the next $1.1 billion tranche and whether or not to reduce electricity tariffs.
