The interim government’s effort to end the provision allowing black money holders to whiten their undisclosed income has fallen short, as the facility remains available for those purchasing apartments and land.
This provision, which has been in place for years, allows individuals to declare black money without facing questions about its source.
Despite the recent withdrawal of the blanket facility allowing the legalization of black money through a 15% tax, real estate investments continue to offer black money holders a significantly lower tax rate.
According to Towfiqul Islam Khan, Senior Research Fellow at the Centre for Policy Dialogue (CPD), black money holders can whiten their money by paying as little as 1.92% to 2.65% in taxes when investing in apartments, depending on the market value.
The National Board of Revenue (NBR) recently scrapped the provision allowing a 15% tax for declaring undisclosed income across sectors. However, the facility remains in place for investments in immovable properties such as flats, apartments, and land. Under the current scheme, if taxpayers pay the fixed rates on these properties, no authority can question the source of the declared funds.
