KARACHI: The Association of Builders and Developers (ABAD) has rejected budgetary measures like amending the Capital Gains Tax (CGT) on real estate to 15 per cent for filers and 45pc for non-filers and imposing a 5pc federal excise duty (FED) on new plots, commercial, and residential properties to curb speculation.
ABAD Chairman Asif Sum Sum said there was no need for additional taxes on the real estate sector, which was already burdened with various taxes.
“The introduction of additional taxes will not only burden the real estate sector but also discourage overseas Pakistanis from investing their hard-earned money in the property business in Pakistan,” he said, adding that these new measures could potentially force overseas Pakistanis to invest in other countries, a scenario that could have a significant impact on the local real estate market.
“It seems that the government wants to close down the local construction industry by imposing fresh taxes,” he remarked, adding that as per 236C and 236 K of the Income Tax, there are already 3pc advance tax, 1pc withholding tax and two per cent town tax besides various taxes as per different slabs.
He said the new taxes will ultimately hit consumers, a point that the government seems to have overlooked.
He claimed that the government had not paid any heed to their pre-budget proposals, a fact that underscores the ABAD’s growing frustration and the urgent need for a dialogue between the government and the real estate sector.
Published in Dawn, June 13th, 2024
