Realtors call for cuts in taxes to boost real estate sector, economy

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ISLAMABAD: A delegation of the Traders Welfare Association, Gulberg, Islamabad led by its President Muhammad Najeeb Malik visited the Islamabad Chamber of Commerce and Industry (ICCI) here on Wednesday.

The delegation highlighted the key issues being faced by the real estate sector.

Addressing the delegation, ICCI President Sheikh Amir Waheed said that the real estate sector has the potential to uplift the economy, but 23-25 per cent cumulative taxes on it were impeding its growth. He urged the government to revise high rates of taxes on this crucial sector to facilitate better growth.

He said that around 250 ancillary industries including cement, steel, brick, timber and building material were linked with the real estate sector and the government should create a conducive environment to turn around the economy.

He said the current taxation system was relying on indirect taxes that burdened the businesses as well as the common man.

He stressed that the incoming government should bring reforms in taxation system to focus on direct taxes with low tax rates that would help in improving the tax revenue.

Other members emphasised that the government should create a supportive environment for this sector in order to promote business activities and revive the economy. They assured the TWA Gulberg Islamabad that ICCI would cooperate with it in resolving key issues of its sector.

Speaking at the occasion, Muhammad Najeeb Malik, President, Traders Welfare Association, Gulberg Islamabad said that real estate sector could drive the economic development of the country, but budget 2016-17 imposed heavy taxes on it that badly damaged its growth.

He said the high tax rates have discouraged new investment in this sector while many investors were leaving real estate sector that was not good for the economy.

He said PTI had announced to build 50 thousand new houses in the country in case voted to power and added that if government reduce taxes on real estate, it could help it in the realisation of this goal.

He called upon the government to address the key issues of real estate sector so that it could play a more effective role in the economic development of the country.

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