ISLAMABAD: A delegation of Islamabad Real Estate Agents Association led by its President Nadeem Chaudhry visited Islamabad Chamber of Commerce and Industry to highlight problems of its members and called upon the government to rationalize taxes on real estate sector that will help in boosting the economy.
Addressing the delegation, Muzzamil Hussain Sabri, President, Islamabad Chamber of Commerce and Industry said that government should give better focus to real estate sector that has the potential to boost economy. He said very high interest rates and weak legal and regulatory protection for investors were the major factors that were hampering the growth of real estate sector in Pakistan and government should take urgent measures to address these problems.
He said that better development of real estate and construction industries would create plenty of jobs in the country and give boost to almost 30 allied industries and government to establish a strong regulatory regime, develop a mortgage market and bring down interest rates in order to accelerate the pace of its growth.
He said mortgage rates in Pakistan were in the range of 15-18pc, compared to 2.15pc in Hong Kong, 2.7pc in Japan, 7-8pc in China and 8-12pc in India and government should reduce these high rates to facilitate the better growth of this important sector. He said government should consider creating a Real Estate Investment Trust Fund to support private developers to spur growth in the property market. He assured the delegation that ICCI would take up their issues at relevant forums for redress.
Speaking at the occasion, Nadeem Chaudhry, President, Islamabad Real Estate Agents Associationhighlighted various issues being faced by the businessmen of real estate sector. He said that advance tax and gain tax were the main problems due to which businessmen of this sector were facing problems and stressed upon the government to look into these issues for redress. He said real estate was one of the main industries in the federal capital and its role was vital for the development of local economy. He emphasized that government should simplify complicated taxes and reduce taxes and interest rates for this industry to pave way for its better growth.
He said CDA and Housing Foundation should not transfer any plot without registered dealers that will strengthen this industry. He said government should announce a separate housing sector or allocate quota of plots for small businessmen of real estate sector to mitigate their housing problems.
