KARACHI: Aimed at rationalizing the transfer duties and taxes and facilitating real estate developers, the Sindh government has launched the Real Estate Investment Trusts REIT, Customs Today learnt.
With necessary legislative changes in April 2015, the Sindh province took lead not over just other provinces of Pakistan but all of South Asia as this legislation has facilitated the launch of the first REIT Fund.
And in this regard, the formal launch took place at the Karachi Stock Exchange on June 8, 2015, sources confided to Customs Today.
The sources added that this move would provide an opportunity to the real estate developers to conduct their business in an organized, documented and transparent manner in which property developers could raise funds from the capital markets. Besides, the general public could also participate in the process.
“We have rationalized the transfer duties and taxes for REIT in a manner that it will encourage businesses to undertake projects under the REIT structure without compromising the government’s revenues.
In fact, this rationalization shall result in a higher quantum of revenues for the government on the one hand and enhanced activities in the construction, real estate and investment sector on the other”, they said.
“It is estimated that in the next fiscal year, we would see three or four new REIT funds in the market. In the long-run REIT can also contribute towards addressing the housing shortage challenge”, sources concluded.
