FTO promises to prioritise tax issues of builders and developers

KARACHI: Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah has said that tax-related issues of the Association of Builders and Developers (ABAD) will be resolved on a priority basis.

Eliminating irregularities in the tax system is part of the FTO’s mandate, he added during his visit to the ABAD House on Tuesday.

He also assured that a representative appointed by ABAD would be made an advisor to the FTO to address the tax issues facing builders and developers.

Dr Asif Mahmood acknowledged the significant role of the construction sector in economic development. He noted that ABAD members, through their construction activities, not only provide employment to millions but also contribute trillions of rupees to the national treasury in the form of taxes. He encouraged ABAD members to file their complaints with the FTO and assured them that these would be resolved promptly, with implementation also ensured.

He added that taxpayers are the backbone of the country, and the FTO treats them with respect and dignity. Dr Asif revealed that in 2023, the FTO received 8,963 complaints, of which 8,000 were resolved. He reiterated the FTO’s commitment to addressing taxpayers’ grievances effectively.

ABAD Chairman Hassan Bakhshi criticised the FBR’s monitoring policy, saying that repeated summons to builders and developers under this policy are detrimental to Pakistan’s economy.

Citing a report by the State Bank of Pakistan, he mentioned that the construction sector provides employment to millions. He further highlighted that overseas Pakistanis remit $30 billion annually, 54 per cent of which is invested in real estate and construction.

The chairman also pointed out that the FBR collects capital gains and income tax during property lease and registration and has now imposed a federal excise duty on these transactions. He expressed concern that the oppressive tax regime is discouraging foreign investors, which negatively impacts the national economy.

Later, ABAD members presented their tax-related grievances to the FTO, who instructed them to submit their complaints in writing to ensure timely resolution.