ISLAMABAD: In a collaborative effort between the Islamabad Chamber of Commerce and Industry (ICCI), Islamabad Estate Agents Association (IEAA), and the Federation of Realtors Pakistan (FORP), Ahsan Zafar Bakhtawari, President of ICCI, emphasized the urgent need for the government to reconsider the high taxes imposed on the real estate sector.
Bakhtawari stressed that these taxes, introduced in the 2023-2024 budget, could severely impact property businesses and hinder overall economic growth.
As per the details, he proposed that the government engage in consultations with real estate stakeholders to rationalize these taxes, potentially saving businesses and the economy from detrimental consequences.
Bakhtawari further noted that several real estate businesses have already shut down due to the high tax rates, and without revisions, more may follow suit.
He also advocated for the government to provide attractive incentives to the construction and real estate sector to encourage investment and expedite economic recovery.
Sardar Tahir Mehmood, President of IEAA and FORP, highlighted major tax concerns within the real estate sector, pointing out the 1% tax on deemed income of immovable assets under Sec-7E, which he deemed destructive to the real estate and property industry.
Mehmood urged the government to promptly withdraw this tax to prevent the collapse of real estate businesses.
He also raised concerns about increased withholding tax (WHT) rates for filer and non-filer buyers and sellers, suggesting that these measures might inadvertently promote tax evasion rather than enhance tax revenue.
Besides, he cautioned that unless the government revises these high taxes on the real estate sector, realtors would initiate a robust protest against such coercive tax measures.
Source: Islamabad Post
