ISLAMABAD: President Islamabad Chamber of Commerce and Industry (ICC), Sheikh Amir Waheed has urged the Federal Board of Revenue (FBR) to stop harassing builders and developers because such tactics would discourage investment in the real-estate sector and hurt the economic growth of the country.
He said on the pretext of expanding the tax net, FBR has started issuing notices to builders and developers for providing details of buyers of shops and flats in the construction projects which was not a wise approach as it was creating harassment in the business community of real estate sector.
He said that after agriculture, the construction sector was the second largest job providing industry in the country and the growth of over 100 other ancillary industries was directly linked to the growth of the construction industry. Many countries in the world were providing good incentives to the real estate and construction industry in order to boost economic activities, but in Pakistan, the tax machinery was taking measures to create more difficulties for this industry. He added that all the details were provided to FBR at the time of transfer of property while the builders and developers were paying gain tax and advance tax on the lease and registration of property.
Since when is real estate and associated activities part of commerce and industry? A big reason why ICCI is a huge failure to small and medium enterprises and industries is because it is infested with traders (who don’t add any real manufacturing value aka value addition) and real estate dealers (gamblers encouraging use of black money) who have no cogent understanding about encouraging and promoting manufacturing industries and jobs which is the backbone of any economy. A simple analysis of background of all its board members should be eye opening.