LAHORE: Government should withdraw heavy taxes imposed on the real estate after July 01, 2016 and tax slab should be restored at the level of 30th June that would help revival of this vibrant sector.
The demand was raised at a meeting between the Lahore Chamber of Commerce and Industry (LCCI) Vice President Muhammad Nasir Hameed Khan and President of DHA Estate Agents Association Major ® Muhammad Rafiq Hasrat who was leading a 30-member delegation here at the Lahore Chamber of Commerce & Industry on Friday.
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The meeting demanded that as like stock exchange, investors of real estate should be given amnesty so that buyers of property could easily show the sources. Federal government and provinces should collect tax at same valuation table and Federal Board of Revenue should adopt table DC rate with an increase of 10%. The property owners, who have completed the time span of two years by the end of June 2016, should be given zero gain tax status. Withholding exemption should be increased to 6 million from existing 4 million. It was also demanded that Punjab government should merge CVT and Stamp duties and collect only 3% percent single tax.
Speaking on the occasion, the LCCI Vice President Muhammad Nasir Hameed Khan said that teal estate is a dynamic sector and has the ability to attract huge foreign investment but because of adverse policies and heavy taxation, it is facing catastrophe-like circumstances and struggling for survival. He said that real estate sector is the second largest job provider and its crisis would lead to the unemployment.
He said that government cannot achieve its economic targets without due support of the business community. He said that not breathing space has been left for the business community because of the severe issues like bank account attachment, political instability and heavy taxation on the trade & industry.
The LCCI Vice President said that transactions in real estate sectors have been fallen by around 90%. If government withdraws taxes from real estate sector, it would enhance government’s revenue as number of transactions would be increased.
