LAHORE: Shabbar Zaidi, the former chairman of the Federal Board of Revenue, has stated that the real estate sector is the “parking lot” of untaxed money in Pakistan.
During a session on ‘Taxation and Development’, Zaidi claimed that with the help of DHAs (Defence Housing Authorities) and the army, a system to officially untax real estate money has been developed, resulting in perpetual amnesty for the sector.
Moreover, he further mentioned that 70% of the tax collected in Pakistan is paid by just 300 companies.
Zaidi also discussed his steps to discourage tax on real estate and business of the “files” of plots that had stopped during his time as FBR chairman.
He noted that the chief of army staff had complained about his actions, stating that DHAs were the business of “their people.”
Zaidi suggested that ultimately, the DHAs would have to be removed from the real estate business.
Additionally, Ikramul Haq, a columnist, lamented that there were frequent amnesties on the declaration of assets and haphazard taxation on extra plots of land.
Meanwhile, Kashif Anwar, the president of the Lahore Chamber of Commerce and Industry, expressed his support for amnesty and suggested that there should be an amnesty on undeclared foreign reserves to bring money back to the country.
