KARACHI: The representatives of real estate sector, criticising the government’s decision to collect taxes on higher rates though new valuation tables from the realtors, said that the action have brought the reality businesses to a standstill.
Pakistan Real Estate Industry Forum (PREIF) President Shaban Elahi and General Secretary Ghazanfer Mehboob said if genuine demands of the realtors were accepted and timely action was taken, the government’s tax collection from the sector would have increased by 500-600 per cent.
They said new housing schemes are no longer viable due to lack of investors interest. Overseas Pakistanis investment in real estate has slowed down significantly and capital is shifting to other investment avenues, they lamented.
They recalled real estate transactions had been taking place at Deputy Commissioner (DC) rates for many decades. “The DC rates were not revised suitably keeping in view the rising rates of real estate which led to a significant undocumented or grey economy,” they acknowledged.
