Agents association demands reduction in taxes

Islamabad

Islamabad Estate Agents Association (IEAA) demanded of the government to reduce taxes on real estate sector in the upcoming fiscal budget otherwise its decline would have adverse impact on the national economy. 

IEAA Chairman Abid Khan, President Rana Muhammad Arshad and General Secretary Zulqarnain Abbasi said cumulative impact of various taxes including advance withholding tax, capital value tax, and registration fee was around 15 percent on real estate sector due to which the business activities in this sector have almost come to a halt.

They said the property transactions have nearly halted after the government changed laws meant to determine 'fair market value of the properties', adding "The gap between the DC rate and the fair market value cannot be bridged in one go."

"If Federal Bureau of Revenue (FBR) issues notice to any estate agent then it should provide its copy to the IEAA as it would help reduce corrupt practices by the government officials," they said.

They said overseas Pakistanis are serving their country by bringing precious capital from abroad so the government should not impose tax on them when they purchase property in Pakistan.

The limit of tax exemption should be increased from Rs4 million to Rs6 million and those projects that are at planning stage should be exempted from every kind of tax, they said.