MULTAN: Federal Tax Ombudsman Dr. Asif Mahmood Jah reassured the Association of Builders and Developers (ABAD) members that their tax-related grievances would be resolved on a priority basis.
Addressing ABAD representatives during his visit to ABAD House, Dr. Jah reiterated his office’s commitment to eliminating irregularities within the tax system, emphasizing it as a core responsibility of the FTO.
Recognizing the economic significance of the construction sector, Dr. Jah highlighted the vital role that ABAD members play in driving national development. He acknowledged their contribution to the economy, noting that the sector not only generates millions of jobs but also contributes significantly to the national exchequer through taxes.
To address the industry’s concerns more effectively, Dr. Jah announced that a representative nominated by ABAD would be appointed as an advisor to the FTO.
Encouraging ABAD members to file their complaints, Dr. Jah assured them of prompt resolution and proper implementation of solutions. Reflecting on the FTO’s recent successes, he shared that of the 8,963 complaints received in 2023, 8,000 had been successfully resolved. “Taxpayers are the backbone of the country, and we are dedicated to addressing their grievances with dignity,” he stated.
ABAD Chairman Hassan Bakhshi, during the meeting, voiced strong criticism of the Federal Board of Revenue’s (FBR) monitoring policies, particularly the repeated summons to builders and developers. Bakhshi argued that these actions were having a detrimental impact on the construction sector, which is a cornerstone of Pakistan’s economy. He pointed to a State Bank of Pakistan report highlighting that the construction industry provides substantial employment opportunities and stressed the importance of overseas Pakistani investments in the sector, which contribute $30 billion annually, with 54% directed towards real estate and construction.
Bakhshi also raised concerns regarding the rising tax burden on property transactions. He noted that the FBR already collects capital gains and income taxes during property lease and registration but has now introduced a federal excise duty on these transactions. He warned that such additional measures could deter foreign investment and adversely affect the broader economy.
In response, Dr. Jah assured ABAD members that the FTO would work closely with them to resolve their tax-related issues. He encouraged the submission of complaints in writing for timely and efficient resolution.
Dr. Jah reaffirmed the FTO’s ongoing commitment to fostering a fair and transparent tax environment for the construction sector, ensuring that the industry can continue to contribute to the country’s growth without undue hindrances.
This meeting marks a significant step in improving the relationship between the construction sector and the federal tax authorities, as both parties work towards addressing long-standing issues that affect the growth and stability of the industry.
