Builders and Developers Oppose Imposition of Heavy Taxes on Real Estate Sector
Description:
The Association of Builders and Developers (ABAD) opposed budget measures that include an increase in property capital gains tax (CGT) to 15 percent for applicants and 45 percent for non-applicants and 5 percent Federal Excise Duty (FED) on new land, businesses - and housing estates to curb speculation.
ABAD President Asif Sum Sum argued that the real estate sector is already overburdened with various taxes and additional burdens are unnecessary."The new taxes will not only burden the real estate sector but also discourage overseas Pakistanis from investing their hard-earned money in the Pakistani real estate market," he said.
He warned that these measures could lead overseas Pakistanis to invest in other countries, which could have a major impact on the local real estate market."It seems that the government is trying to shut down the local construction industry by imposing new taxes," he commented, noting that there is already a 3 percent advance tax under Sections 236C and 236K of the Income Tax Ordinance.
1 percent withholding tax and 2 percent city tax in addition to other charges.He emphasized that these new taxes will ultimately affect consumers, which the government seems to have ignored.He also claimed that the government ignored his budget proposal, highlighting ABAD"s growing frustration and the urgent need for dialogue between the government and the real estate industry.
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