LAHORE: The Punjab Revenue Authority (PRA) has taken significant steps to tackle the longstanding issue of tax evasion in Lahore’s real estate sector.
According to sources, the authority is focusing its efforts on the Defense Housing Authority (DHA) area, aiming to boost tax collection and meet revenue targets.
Furthermore, property developers, builders, property dealers, and property commission agents are among the key targets of these measures.
Recently, senior officials from the PRA, including the Additional Commissioner and Enforcement Officer, visited the DHA in Lahore.
During a meeting with the DHA Secretary at the headquarters, strategies were discussed to combat tax evasion, and the PRA sought cooperation from the DHA to ensure compliance with tax regulations.
To expand the tax collection scope, the PRA spokesperson revealed plans to identify multiple locations where tax targets will be enforced.
The Chairman of PRA emphasized that no leniency would be given to individuals who fail to pay sales tax on services throughout Punjab.
It is worth mentioning that tax evasion in the real estate sector, including Lahore, has been a persistent issue, leading to substantial revenue losses for the government.
Furthermore, Defense Minister Khawaja Asif recently highlighted that tax evasion in the real estate sector alone amounts to an estimated Rs. 500 billion.
Moreover, one of the primary reasons behind tax evasion in the real estate sector is the lack of a comprehensive documentation system.
Many property transactions are conducted in cash, allowing individuals to easily evade taxes.
In response to this issue, the government has previously introduced a tax amnesty program and pledged to establish a more transparent system.
According to the Pakistan Institute of Development Economics (PIDE), the real estate market in Pakistan remains one of the largest and fastest-growing sectors of the economy.
The State Bank of Pakistan (SBP) reported that the real estate sector contributed approximately 2% to the country’s GDP in 2021, with an estimated value of Rs. 5.2 trillion.
Despite facing a slight slowdown due to the COVID-19 pandemic in 2020, the sector has consistently shown growth over the years, with an average annual growth rate of 4.2% from 2011 to 2019.
Source: Profit
