GFIL Approves Sale of 175 Kanal Land in Kasur

The Board of Directors of Ghazi Fabrics International Limited (GFIL) has approved the sale of 175 Kanal and 10 Marla of land in Mohal Chak No 66 (Dina Nath), Tehsil Pattoki, District Kasur, on May 12, 2025, a strategic asset disposal with significant tax implications for stakeholders. Our tax law firm advises clients to ensure Federal Board of Revenue (FBR) compliance as this transaction unfolds.

The decision, announced via a Pakistan Stock Exchange (PSX) notification, aligns with GFIL’s asset optimisation strategy to enhance shareholder value, pending shareholder approval under Section 183(3)(a) of the Companies Act, 2017, with an Extraordinary General Meeting (EOGM) scheduled for June 4, 2025, at 8-C, E-III, Gulberg-III, Lahore, per the text. Sale details, including buyer and consideration, will follow finalisation, adhering to regulatory requirements. Web context from PSX updates shows textile sector land sales as common, but posts on X reflect investor concerns over valuation transparency.

From a tax law perspective, the land sale triggers capital gains tax under Section 37 of the Income Tax Ordinance, with potential FBR scrutiny on sale proceeds, especially if foreign buyers are involved, requiring withholding tax (WHT) at 15% under Section 6. Real estate transactions may face sales tax adjustments under the Sales Tax Act, 1990, with input tax credits under Section 8B needing reconciliation. Dividend distributions post-sale could also attract tax audits under Section 29.

Critically, the narrative of “shareholder value” may obscure tax risks—web sources note FBR’s focus on real estate, and X sentiment questions sale timing, suggesting audit pressures. Clients must stay proactive.

Our firm advises clients to review capital gains, ensure WHT compliance, and prepare for FBR audits, navigating this asset disposal.