ISLAMABAD: Malik Amjad Zubair Tiwana, Chairman of the Federal Board of Revenue (FBR), has firmly conveyed to the real estate sector that the implementation of any new tax exemptions, concessions, or preferential tax treatments is not feasible at this time.
In response to the directives issued by the Minister for Finance and Revenue during the 90th meeting of the National Assembly Standing Committee on Finance and Revenue, a meeting was convened at the FBR Headquarters in Islamabad to address taxation-related issues concerning real estate transactions.
Chaired by Chairman FBR, Malik Amjad Zubair Tiwana, the meeting witnessed the participation of a delegation of realtors, led by Sardar Tahir Mehmood, President of the Federation of Realtors Pakistan, alongside the team of FBR officers.
The delegates from the real estate sector highlighted the urgency of rationalizing the taxation of immovable property given the current state of the economy.
In addition, they also emphasized that while real estate had historically been a significant source of both domestic and foreign investment, the prevailing economic conditions have discouraged people from investing in the sector.
They pointed out that recent taxation measures on immovable property introduced through the Finance Act of 2022 and the Finance Act of 2023 have created an unfavorable environment for real estate investment.
Among the proposals put forth by the delegation was the abolishment of tax on deemed income from immovable property.
Chairman FBR assured the participants that their concerns would be addressed and that the FBR would provide the best possible facilitation to overcome challenges arising from implementing tax laws.
Besides, he directed his team to ensure effective coordination and consultations with realtors in this context.
Furthermore, the Chairman highlighted that due to the Stand-by Arrangement with the International Monetary Fund (IMF), introducing new tax exemptions, concessions, or preferential tax treatments might not be feasible.
Source: Business Recorder
