According to the news, an amendment has been made to Section 68 of the Income Tax Ordinance 2001 through the Finance Act 2016, which will be considered as a principle method for evaluation of property value and tax, effective from July 1.
By imposing this amendment, the property evaluation rate set by the provincial governments, known as DC (Deputy Commissioner) Rate is abolished from July 1st 2016. After that, all investors will have to undergo a new system, through which one or more valuation experts referred by Federal Board of Revenue and appointed by State Bank of Pakistan, will evaluate market value of a property for tax calculations. Taxation Experts suggested that, through this system black money can be brought back into the tax net. In order to discourage tax evasion, the evader will be liable to pay twice the payable tax amount as penalty and additional tax. Depending on circumstances, the tax evader can also face 2-year jail term.