ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to reduce taxes on real estate sector so that it could play an effective role in the economic development of the country.
Talking to a delegation of Islamabad Estate Agents Association (IEAA), ICCI President Sheikh Amir Waheed said that the role of real estate sector was vital in promoting commerce, industry, growth, employment and poverty reduction but the imposition of taxes on it has badly affected its growth. He said that the growth of about 250 ancillary industries including cement, steel, brick, timber and building material was linked with real estate sector, but high taxes and a new method of determination of property prices have slumped business of real estate and its allied industries.
He said due to this situation, many investors were leaving this sector which was not good for the economy.
He called upon the government for resolving the key issues of real estate sector and rationalise taxes on it as its growth would yield multiple benefits for the economy including jobs creation, increase in tax revenue, growth of trade, industrial activities and the overall economy.
Speaking on the occasion, IEAA President Sardar Tahir highlighted the key issues of real estate sector. He said that Budget 2018-19 has barred non-filers from purchasing property of Rs5 million and above which has affected business activities in this important sector of the economy.
He stressed the government for removing the ban on non-filers and allow them to purchase property of Rs5 million and above by charging some additional tax on them.
He said that CDA was not resolving issues of real estate sector and urged that the civic body for adopting a proactive approach to address the key issues of this sector.
He said Federal Board of Revenue (FBR) should also reduce heavy taxes on property business so that this sector could play an enhanced role in the economic growth of the country.