ISLAMABAD: A federation of realtors on Saturday criticised the tax on the real estate sector and demanded its withdrawal, warning that otherwise the industry would suffer.

The leader of the federation, Ijaz Khan, said that tens of thousands of people would suffer because of this decision and it would increase unemployment in the country.

Addressing a press conference at the National Press Club, he said the government’s decision to impose the tax would discourage overseas Pakistanis from investing in the country.

A number of realtors from across the country, including Khalid Mehmood, Abu Bakr Bhatti, Noor Mohammad, Mohammad Aslam, Nasir Javed and others were also present. They demanded that the capital gains tax should not be increased from 5pc, there should not be any tax on property worth Rs9 million and special packages should be introduced for overseas Pakistanis to encourage foreign investment.

Mr Khan said that 1 million people are involved in the real estate business.

“However, since 2016 they have been facing severe financial losses due to deliberate efforts by some elements to destroy their businesses. More than 20 people who were linked to the real estate business have committed suicide in the last two years. Moreover, investment by overseas Pakistanis has decreased by 52pc,” he said.

He added that people who become unemployed will have no choice but to turn to criminal activity because they cannot do any other work or jobs.

Participants said that realtors would boycott transfers of property across the country if the government does not withdraw is recently imposed property taxes.

They said Prime Minister Imran Khan himself claims that tens of other industries are because of real estate, so if the real estate sector is affected all the other industries would also become dormant.

Published in Dawn, June 16th, 2019