ISLAMABAD: Federation of Realtors Pakistan has proposed abolition of tax on deemed income from immovable property.
The President Federation of Realtors Pakistan Sardar Tahir Mehmood proposed this in a meeting with Chairman Fbr held to address and resolve taxation issues concerning real-estate transactions.
In Today’s meeting, Realtors’ delegates emphasised the need to rationalize taxation of immovable property in the backdrop of poor health of the economy.
They stressed that the real estate sector has been the major source of domestic and foreign investment in the past, however, deteriorating economic conditions have pushed people away from investment in this sector.
They also asserted that taxation measures on immovable property introduced through Finance Act, 2022 & Finance Act, 2023 have created a discouraging environment for investment in the real estate sector.
The delegation proposed abolition of tax on deemed income from immovable property. They also requested that there be either no revision of the valuation table of the properties for the time being, or increase, if any must be made, at fair level after consultation with the stakeholders.
Chairman FBR assured the participants that their concerns will be addressed and best possible facilitation will be ensured for removing difficulties arising on account of implementation of tax laws. He directed his team to ensure proper coordination and consultations with the Realtors in this regard.
The Chairman further pointed out that under the Stand-by Arrangement with the IMF, any new tax exemption, concession or preferential tax treatment may not be possible at this time.
It is pertinent to note that the Minister for Finance and Revenue during the 90th meeting of National Assembly Standing Committee on Finance and Revenue held on 4th August, 2023 gave directions to Fbr to hold a meeting with Realtors.
Realtors had informed the committee that the registries have decreased by up to 95 percent along with the closure of transfers across the country. This surge in taxes has increased sufferings of the local investor as well as overseas, as the capital has started transferring abroad. Resultantly, the overseas investors are reluctant with their investments in Pakistan.
