ISLAMABAD: Chairman Federal Board of Revenue (FBR) Malik Amjad Zubair Tiwana has categorically conveyed to the real estate sector that any new tax exemption, concession or preferential tax treatment would not be possible at this time.
After the directives of Minister for Finance and Revenue, issued during the 90th meeting of National Assembly Standing Committee on Finance and Revenue, a meeting was held at FBR Headquarters, Islamabad, to address and resolve taxation issues concerning real-estate transactions.
The meeting was presided over by Chairman FBR, Malik Amjad Zubair Tiwana and attended by the delegation of Realtors led by Sardar Tahir Mehmood, President Federation of Realtors Pakistan, and the team of FBR officers.
Realtors’ delegates emphasised the need to rationalize taxation of immovable property in the backdrop of poor health of the economy. They stressed that real estate sector has been the major source of domestic and foreign investment in the past; however, deteriorating economic conditions have pushed people away from investment in this sector. They also asserted that taxation measures on the immovable property introduced through Finance Act, 2022 & Finance Act, 2023 have created a discouraging environment for investment in real estate sector.
The delegation proposed the abolition of tax on deemed income from immovable property. They also requested that there be either no revision of valuation table of the properties for the time being, or increase, if any must be made, at fair level after consultation with the stakeholders.
Chairman FBR assured the participants that their concerns will be addressed and best possible facilitation will be ensured for removing difficulties arising on account of implementation of tax laws. He directed his team to ensure proper coordination and consultations with the Realtors in this regard.
The Chairman further pointed out that under the Stand-by Arrangement with IMF, any new tax exemption, concession or preferential tax treatment may not be possible at this time.
Copyright Business Recorder, 2023
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