LAHORE: The Real Estate Agents Association (REAA) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have rejected the new taxes levied on the real estate sector.
In this regard, a press conference was held at the FPCCI office here on Tuesday in which the senior vice president of the federation, Khawaja Shahzeb Akram, along with Major (r) Muhammad Rafiq Hasrat, who is the convener of the FPCCI Central Committee for Property and Construction, jointly briefed the media.
Speaking to the media, the leaders of the federation said that 20 per cent gain tax on property and up to 35 per cent taxes by clubbing other taxes on income above Rs5 million were not acceptable.
“The proposed tax should be abolished immediately. Policies formulated without stakeholder consultation can never succeed. A move like a gain tax would adversely affect investment and the business community will take their investments to other countries. Millions of people in the real estate and construction sectors will lose their jobs. Section 203-A, which also gives the power to arrest businessmen on the basis of suspicion, should be withdrawn immediately,” they said.
The convener informed the media that with the operation of the construction sector, about 50 other sectors will also be active and new employment opportunities will be created for the people.
He demanded from the government to immediately restore the old regime of property gain tax.
Speaking about the closure of gas to industries, Hasrat said that due to untimely action of the government regarding LNG and CNG, industries are facing shortage of gas.
“The current leadership of the FPCCI is fully supporting the business community in resolving the issues. Pakistan has received huge investment from abroad in the construction sector. Decisions like the 20 per cent gain tax would adversely affect foreign investment. This move of the government is against the vision of the prime minister.”
He went on to add that the second proposal that has been included in the current finance bill, according to which the profit more than Rs5 million will be added to other income and tax will be charged, should also be abolished immediately. “Overseas Pakistanis should be given a special rebate on investing in Pakistan. The proposals in the current Finance Bill would be detrimental to the real estate and construction sectors,” he said.
Hasrat added that earlier, there was only 10 per cent gain tax which was reduced to 7.5 per cent in the second year, 5 per cent in the third year and zero in the fourth year while the current proposed tax will always have to be paid and due to which the sale and purchase of property will be stopped, investment of billions of rupees will be blocked and millions will be unemployed.
“The decline in real estate business will also reduce the government’s income tax revenue. The property dealers should be registered and their 2 per cent commission should be protected,” he suggested.
