The Federal Board of Revenue (FBR) is weighing a proposal to permit property purchases of up to Rs. 10 million without requiring buyers to disclose the source of their income. However, the plan has sparked concerns among lawmakers, who fear it could create loopholes for black and untaxed money to flow into the economy.

The proposal has also drawn input from the Association of Builders and Developers, which has suggested raising the exemption limit to Rs. 25 million, and up to Rs. 50 million for first-time homebuyers. Tax officials, however, have cautioned that such measures could effectively serve as a perpetual tax amnesty, undermining efforts to curb tax evasion.

To address these concerns, the FBR has proposed capping property purchases at 130 percent of a buyer’s declared liquid assets. Any amount exceeding this limit would require upfront proof of income. In response, the National Assembly Standing Committee on Finance has recommended broadening the definition of liquid assets to include gold, bonds, livestock, and other immovable property. This would allow taxpayers to use existing assets without being forced to sell them before making new property purchases.

The FBR has acknowledged its lack of an efficient platform for buyers to submit proof of resources before completing transactions. Lawmakers have urged the FBR to conduct a trial run of any proposed system before implementing it on a larger scale.