ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) on Sunday called upon the caretaker government to reduce the taxes on real estate sector.
“The real estate sector is playing important role in the economic development of the country but imposition of heavy taxes has badly affected its business activities,” Acting President ICCI Muhammad Naveed Malik said while talking to a delegation of Islamabad Estate Agents Association led by Chaudhry Zahid Rafique who visited ICCI here.
He stressed that the caretaker government should consider reducing tax rates on this sector to facilitate the growth of economy.
He said the outgoing Prime Minister had announced to reduce tax rate on the purchase of property to only one percent along with abolition of DC rate and FBR rates, but the same was not implemented as yet.
He stressed that all other taxes should be abolished on the purchase of property including CVT and stamp duty and only one percent tax rate should be imposed.
He said that capital gain tax slabs on purchase of property should be removed and five percent flat CGT should be introduced.
He said the period of gain tax should also be reduced from three years to two years. He urged that provinces should also abolish CVT and stamp duty on purchase of property and impose only one percent tax rate.
Nisar Mirza vice president ICCI assured that the chamber would fully cooperate with Islamabad Estate Agents Association in resolving key issues of its members.
Highlighting the major issues of real estate sector, Islamabad Estate Agents Association General Secretary Chaudhry Zahid Rafique said that real estate should be given the status of industry to facilitate its better growth.
He said high tax rates on real estate sector have caused slump in property business and urged that tax rates should be revised downward. He said government should double or triple tax rate for non-filers and allow them to purchase property of Rs.5 million and above.
He said Overseas Pakistanis should be considered as filers because they were filing returns in their host countries.
He said government should legalize two percent service charges of real estate agents as they were paying services tax in addition to income tax and it was difficult to determine services tax without giving legal cover to two percent service charges.
