KARACHI: Almost 90 per cent of real estate business has collapsed due to double valuation, raising tax by 100 per cent along with new valuation, and harassment of real estate agents and new buyers by the Federal Board of Revenue during the last six months.

Remaining 10pc business is also feared to close down if government does not take cognisance of this issue, President Defence and Clifton Association of Real Estate Agents Raja Mazhar Hussain told a press conference against newly imposed income tax ordinance 68 A/2001 in real estate property by the FBR on Tuesday at Karachi Press Club.

If these issues are not addressed on an urgent basis, real estate agents would start sit-ins in front of FBR offices all over country.

He demanded that DHA City and Bahria Town should be delisted from FBR valuation table as these areas are included without consent and taking real estate players into confidence.

He said the DC property valuation system was implemented countrywide since 1986 and was acceptable to all stakeholders. “In new ordinance, withholding advance income tax and withholding capital gain tax is increased by 100pc which resulting in closure of 90pc real estate business in the country. Only 10pc business is in the market now which is being run on transactions of small size plots.

Owing to this situation, this business is being moved to Dubai, Malaysia and other countries. There is also a tremendous decline in bank transactions, he lamented.

Published in Dawn, October 19th, 2016