FBR certificate now mandatory for plot, vehicle purchases from July 1

Islamabad: The federal government has decided to make a Federal Board of Revenue (FBR) eligibility certificate mandatory for the purchase of plots and vehicles starting July 1, and relevant amendments have been made in the Finance Bill passed by Parliament.

After the President signs the Finance Bill 2025-26, it will become law as the Finance Act from July 1, with all amended clauses coming into immediate effect.

Through the Finance Bill 2025-26, the government has amended Section 114C of the Income Tax Ordinance 2001. Under this amendment, individuals will be required to obtain an FBR-issued certificate of eligibility to purchase vehicles, properties, or other assets.

However, the Finance Bill also outlines exemptions. An FBR certificate will not be required for purchasing vehicles worth up to Rs7 million, for property purchases up to Rs50 million, and for commercial plots worth up to Rs100 million, the certificate will also not be necessary.

These measures are part of broader fiscal reforms aimed at increasing tax compliance and documentation in the economy.