The Federal Board of Revenue (FBR) has developed a list of more than 70 real estate brokers accused of remitting dollars to the UAE through Hundi/Hawala for property market investment, pressuring the exchange rate in recent days.
Top official sources acknowledged in background discussions that Hundi/Hawala transported a large amount of cash, primarily US dollars, from the open market to Dubai/UAE for real estate investment.
Millions of dollars were involved due to exchange rate pressures in previous weeks.
“The FBR has raised an alarm and prepared a list of real estate agents involved in such practices. When The News contacted it on Tuesday, high official sources claimed it was the tip of a big scandal but needed FIA and other investigations.
The competent authorities listed over 70 real estate agents who collected client cash and changed it into open market foreign currencies. The sources indicated they then sent the foreign exchange to Dubai/UAE markets for property/real estate investments.
Property tycoons warned the government that investment might shift to Dubai/UAE if the Tax Laws Amendment Bill 2024, which was still before the National Assembly Standing Committee on Finance and Revenues, increased tax rates and no-question-asked limit from Rs10 to Rs25-50 million.
The FBR has two months to develop an App for voluntary revisions in filed returns to adjust declared asset values.
The FBR and other relevant departments found that some real estate agents transmit foreign exchange to Dubai, according to the list. Real estate representatives stated it was regular to transfer money through exchange businesses for investment in Dubai because there was no question about the source of revenue. Approximately two million Dirham was transferred to acquire properties. This practice persisted for years. They asked the government to give incentives to discourage Hawala/Hundi foreign exchange transfers since property taxes needed to be lowered.
