KARACHI: Almost 90 percent of real estate business has collapsed in across the country owing to double valuation (DC & FBR), raising tax by 100 percent along with new valuation during the last six months.
Remaining 10 percent business is also feared to close down if government did not take cognizance of this issue.
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. If these issues are not addressed on urgent basis, real estate agents will start agitation against FBR and can also arrange sit-in in front of revenue board offices all over country.
This was explained by Defence & Clifton Association of Real Estate Agents (DEFCLAREA) President Raja Mazhar Hussain, while addressing a crowded press conference against newly-imposed income tax ordinance 68 A/2001 in real estate property by FBR here in Karachi Press Club.
During the press conference, all real estate agents wore black bands on their arms as a symbol of protest.
Raja Mazhar Hussain said that deputy commissioner 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 100 percent which has resulted in closed of 90 percent real estate business in the country. Only 10 percent 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 tremendous decline in bank transaction,” he lamented.
Double valuation system (DC & FBR) should be abolished immediately. Tax percent before June 30th, 2016 should be decreased by 50 percent of that previous rate. Percent of withholding advance income tax should be 0.5 percent for filers and one percent for non-filers while percentage of withholding capital gain tax for filers should be 0.5 and 1 percent for non-filers. A special amnesty scheme should be announced for news buyers of real estate, he demanded.
Association General Secretary Raza Hashmi, Senior Vice President Kaleem Firdousi, Vice President Defence Zuber Baig, Vice President Clifton Mohammad Bashir, Joint Secretary Asif Abdul Karim, Media Secretary Sanaullah, Finance Secretary Nadeem Nazeer, Coordination Secretary Tasaduq Abbas Shaikh, Liasion Secretary Nazeer Barkat, Social Culture Secretary Roohul Ameen, Education Secretary Faraz Qawwi, Welfare Secretary Sardar Sultan, Export Secretary Asif Asmat and other members Managing Committee.
