FGEHA Seeks 5-Year Income Tax Exemption

The Federal Government Employees Housing Authority (FGEHA) has decided to seek a five-year income tax exemption from the federal government, arguing that it operates as a welfare organization on a no-profit, no loss basis to provide affordable housing for serving and retired government employees.

According to officials, the FGEHA’s executive board has approved a proposal to request an extension of the authority’s income tax exemption from July 1, 2024, to June 30, 2029 through the Ministry of Housing and Works. The authority previously enjoyed tax-exempt status from 2020 until June 30, 2024.

Officials said the FGEHA finances its operations through installment payments, service charges, transfer fees, and other receipts, which are used solely for development and operational expenses rather than commercial profit. The authority also plans to seek the necessary amendments to the Income Tax Ordinance, 2001 to secure the exemption.

The board also approved the FGEHA Land Acquisition (Land Sharing Basis) Regulations 2026, introducing a project specific framework that allows greater flexibility in determining land sharing ratios instead of following a standardized approach. A separate proposal on the disposal of commercial properties was deferred for further review.

In addition, the board approved a proposal to name Road No. 804 in Sector G 14 as Chan Shah Kazmi Road in recognition of the late spiritual figure’s historical and cultural association with the area. The proposal will now be forwarded to the federal cabinet through the Ministry of Housing and Works for final approval.

The development comes as several FGEHA housing schemes continue to face delays. The Senate Standing Committee on Housing and Works was recently informed that the authority has been barred from launching new projects until ongoing schemes are completed, although development work in Sectors F 14 and F 15 is continuing.