The Auditor General of Pakistan (AGP) has found that more than 95 % of the builders and developers are available for Pakistan’s 2020 tax forgiveness for the construction of the scheme conditions.
These results were revealed in the “Tax Sector Audit in the real estate sector”, which reviewed the effects of the construction package announced in April 2020. The package offered exemption from past tax responsibilities to reduce tax exemptions, reduce construction equipment shortages and promote economic activity.
According to the Federal Board of Revenue (FBR), 993 builders and developers registered under Section 100D of the Income Tax Ordinance to take advantage of Amnesty. However, the auditors observe widespread non -compliance, which has reduced the revenue significantly.
The Regional Tax Office (RTO) was about 57 % or developers non -filers through Islamabad, which identified the weak implementation of tax returns.
The report highlights that all cases of Punjab and Khyber Pakhtunkhwa were initially clustered under the RTO Islamabad, which is wisely described. This centrality delayed surveillance and tax recovery. To reduce the burden, 3,702 cases of 11,243 were later re -assigned to the relevant tax offices, but often the jurisdiction transfer of the slow diagnosis.
The AGP also flagged the defects in the Inland Revenue Information System (IRIS), where computerized payment receipts often lack the details of taxpayers. These mistakes allowed false tax claims and encouraged bureaucrats. The report recommends that the FBR tried to enforce laws against the property ownership of the proxy property to plug leakage.