'FBR not legally authorised to impose tax on property': Prime Minister Secretariat one-time special levy proposal

A proposal of the Prime Minister Secretariat to impose special levy on urban and rural residential/commercial/industrial properties and agriculture land by the Federal Board of Revenue could not be enforced as the board is not legally authorised to impose tax on property.
It is reliably learnt here on Wednesday that the tax authorities have received a proposal of the PM Secretariat to impose one-time special levy on urban and rural residential, commercial, industrial properties and agriculture lands. The proposal is a part of overall discussions to impose some kind of tax to generate additional revenue for the flood victims. However, the levy could not be implemented due to legal restrictions on the FBR to collect tax on property. The FBR is not legally authorised to impose tax on the property as this is a provincial matter. In this regard, the FBR has formally conveyed about the legal status to the PM Secretariat.
When contacted, tax experts said that the FBR has no Constitutional authority to impose one-time flood tax on urban property and agricultural land to generate additional revenue for the flood victims. The provincial governments can impose the flood tax on property as the federal government is only authorised to impose tax on the rental income from property. Secondly, the federal government can also charge tax on the income of the property and could also impose surcharge on such income. The FBR was empowered to collect capital value tax on immovable property because it was imposed on the transfer of the property. However, the provincial governments are legally authorised to empower the FBR to collect the tax on property, if desired. The provincial governments have already allowed the FBR to collect sales tax on certain services under the Provincial Sales Tax Ordinances.
Sources said that the FBR has the experience for collecting capital value tax (CVT) on the immovable property to document buying/selling of property transactions. The powers to collect CVT on immovable property have been transferred to provinces in last budget (2010-11).