FBR Introduces Online Fee and Exemption Service for 1% Property Tax: A Convenient Step Forward

The Federal Board of Revenue (FBR) has announced significant developments in the real estate sector, aiming to streamline property tax procedures and enhance convenience for citizens.

Online Fee and Exemption Service for Property Tax: The FBR has taken a significant stride towards modernization by introducing an online platform for citizens to manage property tax exemptions and payments. The new “IRIS” updated system will allow taxpayers to apply for exemptions or pay the one percent tax on immovable properties, all without the need to physically visit the Commissioner Inland Revenue. This move is expected to reduce corruption concerns and simplify the process for taxpayers seeking exemptions.

Revised Property Values Implementation: In August 2023, the FBR plans to release revised higher values for immovable properties. To ensure accurate values, committees will be established in each city by the end of the current month to determine these new property values. This step signifies the FBR’s commitment to transparency and fairness in property valuation.

Easing the Tax Process: Previously, individuals selling immovable properties were required to either obtain an exemption certificate from the Commissioner Inland Revenue or pay a 1% tax under section 7E of the Income Tax Ordinance. This process applied to both tax filers and non-filers. The introduction of the online exemption service marks a positive shift towards simplifying tax procedures and reducing bureaucratic hurdles.

A Step Towards Efficiency: The decisions were made during a meeting between FBR Chairman Amjad Zubair Tiwana and representatives from the real estate sector. By adopting digital solutions and refining property valuation processes, the FBR aims to enhance efficiency, accuracy, and transparency in the real estate taxation system.

Conclusion: With these proactive measures, the FBR aims to create a more accessible and streamlined property tax process for citizens, ultimately contributing to a more transparent and efficient taxation system in Pakistan.