ISLAMABAD: A delegation of Real Estate Consultants Association, DHA, Islamabad led by President Col. ® Munawar Heral visited Islamabad Chamber of Commerce & Industry (ICCI) and apprised ICCI office bearers of the problems being faced by the real estate sector. Arif Jeewa, Chairman, Association of Builders and Developers of Pakistan, Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI were also present at the occasion.
Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that real estate sector has the potential to promote investment, industry, economic growth and employment, however, government imposed heavy taxes on it in budget 2016-17 that have badly affected its growth. He said that growth of around 250 ancillary industries including cement, steel, brick, timber and building material was dependent on real estate sector, but the increase in taxes has slumped the business of all these allied industries. He urged that government should cut heavy taxes on this sector in the coming budget for its revival. He assured the Real Estate Consultants Association DHA Islamabad that ICCI would fully cooperate in resolving their key issues.
Arif Jeewa, Chairman ABAD said that real estate sector played important role in the economic development of any country, but heavy taxes on this sector in Pakistan have damaged its growth. He said many investors were now leaving real estate sector that was not good for the economy. He cautioned that if government did not pay urgent attention to resolve the key issues of real sector, it would discourage new investment in the country and give rise to unemployment.
Speaking at the occasion, Col ® Munawar Heral President and Muhammad Ahsan General Secretary, Real Estate Consultants Association DHA Islamabad said that since July 2016, government has increased 100 percent taxes on real estate sector that caused 50 to 60 percent reduction in its business activities. They said heavy taxes on this sector have forced the investors to shift their capital outside the country. They stressed that government should withdraw heavy taxes on this sector and announce a general amnesty scheme for it to attract investment from expatriates and Pakistanis. They said a flat rate of 5% gain tax should be charged on this sector. They said if government wanted fair market value of property, it should abolish all taxes on real estate and charge 0.5% tax on filers and 1% on non-filers on sale and purchase of property.
Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that the economy of Pakistan was facing many challenges and real estate sector has the potential to steer it out of troubles. They stressed that government should reduce taxes on real estate sector in order to promote investment and create new jobs that would trigger the economic growth of the country.
