The Federal Board of Revenue (FBR) has introduced a new requirement in the proposed income tax return form for individuals, effective from July 1, 2025.

Taxpayers will now be required to declare the Fair Market Value (FMV) of immovable properties during purchase or sale transactions, in addition to the declared transaction values.

According to real estate expert Muhammad Ahsan Malik, the new provision—introduced in the recently released draft income tax return form for tax year 2025—has raised concerns among the real estate community and tax filers alike. Speaking to Business Recorder, Malik criticized the move, calling it “strange” and a reflection of mistrust towards taxpayers.

“The taxpayer already declares the purchase value of the property in the income tax return. By asking for the Fair Market Value, the FBR is only adding to the confusion,” he stated.

Malik also highlighted ongoing issues faced by new tax filers, who are still being treated as late filers when it comes to calculating higher tax rates on property transactions. “Fresh filers should not be penalized with the same tax treatment as late filers,” he asserted.

Addressing the challenges faced by overseas Pakistanis, Malik pointed out that the federal budget for 2025-26 failed to provide any tax relief for non-resident citizens. He noted that overseas Pakistanis are still required to obtain a certificate from the concerned Commissioner of Inland Revenue to verify their non-resident status and to qualify for lower tax rates on immovable property transactions.

“This additional requirement of obtaining a non-resident certificate is not only unnecessary but highly impractical,” Malik said. “It is virtually impossible for overseas Pakistanis to obtain such a certificate without resorting to speed money,” he alleged.

The real estate sector has urged the FBR to reconsider these measures and focus on simplifying procedures to foster voluntary compliance, especially for overseas Pakistanis who contribute significantly to the national economy.