Starting July 1, only 1.2 million people will be eligible to buy cars and proerties worth more than 5 million.
As reported by pkrevenue, the federal government in the budget 2018/2019 announced various measures to document the economy through restricting non-filers of tax returns.
The government through Finance Act, 2014 introduced higher withholding tax rates for non-filers of income tax returns in order to increase cost of transactions for broadening of tax base and documentation of economy.
The gap between withholding tax rates for filers and non-filers was further enhanced in subsequent years. However, the increase in return filers is still not satisfactory as only 1.45 million people are on the Active Taxpayers List (ATL) out of total population of 212 million in Pakistan.
Through Finance Act, 2018 the government finally decided to restrict the non-filers in making transactions including purchase/registration of locally manufactured and imported cars. Further, non-filers will also be denied from purchasing immovable properties above Rs5 million.
Considering the new condition of making fair market declaration on purchase of immovable properties there are less chances that non-filers would be able to purchase below Rs5 million worth immovable properties.