Islamabad – The Federal Board of Revenue (FBR) has compiled a list of more than 70 real estate agents suspected of remitting millions of dollars to the United Arab Emirates (UAE) through hundi/hawala, allegedly to invest in the UAE’s property market. This practice has reportedly put pressure on Pakistan’s exchange rate in recent weeks.
Top official sources revealed that a significant amount of cash, particularly in US dollars, was exchanged from Pakistan’s open market and transferred to the UAE, contributing to fluctuations in the exchange rate. The FBR has now raised an alarm over this illegal practice, signaling the need for further investigations by the Federal Investigation Agency (FIA) and other authorities.
The list compiled by FBR shows that real estate agents are converting cash into foreign currency and then remitting it to the UAE for property investments. Sources claim that this practice has been ongoing for several years.
Property sector representatives argued that this transfer of funds was a routine practice facilitated by exchange companies, with no scrutiny on the source of income. They also highlighted that around two million dirhams were regularly transferred to buy properties in Dubai.
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The real estate sector has raised concerns about proposed amendments in the Tax Laws Amendment Bill 2024, which could increase taxes and the no-questions-asked limit from Rs10 million to Rs25-50 million. They warned that such measures could drive investments further abroad, particularly to the UAE.
Meanwhile, the FBR has been given a two-month deadline to develop an app to allow taxpayers to voluntarily amend the value of their declared assets.
The ongoing investigation aims to curb the flow of foreign currency through illegal channels and ensure stricter compliance with regulations in Pakistan’s real estate market.
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