FBR’s New Certificate of Eligibility
The Federal Board of Revenue (FBR) has introduced a new legal requirement under the Finance Bill 2025–26 that significantly changes how individuals purchase property and vehicles in Pakistan. As per the latest update, a Certificate of Eligibility is now mandatory before executing any high-value transaction involving immovable property or motor vehicles. This move is part of a broader strategy to improve tax compliance, discourage the use of undeclared income in large purchases, and strengthen digital monitoring of asset acquisition.
The new rule applies to both individual taxpayers and business entities planning to buy real estate or a vehicle exceeding a certain threshold, which will be formally notified by the federal government. Before such a transaction can proceed, the buyer must obtain a Certificate of Eligibility from the FBR via its IRIS online system. The registration authorities—such as the provincial excise department or land registrar offices—will be instructed not to register any property or vehicle unless this certificate is provided at the time of transaction.
This certificate acts as an official confirmation that the buyer is a registered taxpayer, has filed their return for the previous tax year, and has disclosed adequate income or assets in their tax profile to justify the intended purchase. The eligibility criteria will be auto-assessed by the IRIS portal. Upon logging into the FBR’s IRIS platform, users will find a new application feature for the Certificate of Eligibility. Once they apply, the system cross-checks their filing status, reported income, and declared assets. If all checks are cleared, the portal generates a digital certificate that must be presented to the relevant authority to complete the purchase process.
Failure to obtain the certificate means that the buyer cannot proceed with the transaction. This digital barrier ensures that no large property or vehicle acquisition can be made using undeclared or black money. This provision is expected to close a major loophole that previously allowed non-filers and individuals with under-reported income to make big-ticket purchases without scrutiny. The certificate must be acquired before registration, not after, and non-compliance will result in outright rejection of registration applications.
FBR’s move also aligns with Pakistan’s broader commitments to financial transparency and tax reform, including conditions set forth by global financial bodies such as the IMF. The government aims to gradually expand the tax base by linking high-value lifestyle indicators with compliance behavior. Individuals making such purchases will now face an automated digital check that assesses whether their tax history supports such spending. In other words, the system will now ask: “Are you financially eligible to buy this asset as per your declared income?”
This also means that a person must ensure their tax return for the preceding year has been filed. Moreover, the declared income or assets must logically support the purchase value. For example, if a person earning Rs. 1.2 million annually applies to purchase property worth Rs. 25 million, the system will likely flag the transaction unless the person has declared substantial prior assets, inheritance, or capital gains. This step is not just about checking box compliance, but matching reported financial activity with actual transactions.
Real estate agents, car dealers, and registration authorities will need to update their internal processes to comply with this new requirement. Buyers must now be advised early in the process to ensure they are compliant and eligible before making any financial commitment. For this reason, many tax consultants and registration service providers have started offering IRIS login support, return filing, and eligibility application services to avoid rejection and delays.
This reform is part of FBR’s wider digitization and enforcement strategy. Over the past few years, FBR has linked various databases, such as NADRA, vehicle registration, land records, utility payments, and travel history, to create a more complete picture of a citizen’s financial profile. The Certificate of Eligibility is one more tool in this data-driven enforcement system. It shifts the compliance burden onto the buyer before they complete a large transaction, instead of relying solely on post-purchase investigations.
Although the move is largely praised for improving accountability, it has also raised concerns among stakeholders about ease of doing business. Critics argue that it may slow down the pace of genuine property and vehicle transactions, especially in urgent cases. However, FBR officials maintain that the certificate process is fully digital and can be completed within minutes if the taxpayer is compliant. They urge buyers to maintain up-to-date tax filings and use licensed professionals for assistance.
For ordinary citizens, the message is simple: if you plan to buy a car or property of significant value in Pakistan, ensure you are a filer, have declared sufficient assets, and get your Certificate of Eligibility approved from FBR beforehand. Ignoring this requirement can lead to legal complications, financial loss, or rejection of registration altogether.
Taxpayers are advised to consult their tax consultants or log into the IRIS system directly to check their eligibility and understand what documents or declarations might be needed. Those who have not yet filed their tax return for the previous year should prioritize doing so immediately, as this is now a prerequisite for obtaining eligibility.
