Saleable area: Abad proposes Rs 15/sq ft levy for 3 to 5 years under final tax regime

Association of Builders and Developers (Abad) has proposed the Federal Board of Revenue (FBR) to collect Rs 15 per sq. ft. levy on saleable area for three years or five years under final tax regime. The representatives of Abad headed by Chairman Muhammad Hanif Gohar during a meeting with FBR officials suggested that Rs.15 per sq. ft.
income tax should be collected at the time of approval of saleable area to discourage the interaction between tax collectors and taxpayers. The said levy should be for the duration of the construction of the project, which could three years to five years. Moreover, Abad representatives recommended FBR that if the Abad members paid the said levy, the board would not select cases of Abad members for audit and the tax department should also be restricted to issue any notice except for outstanding payments to the members.
They further said that this levy should be collected under final tax regime and no other taxes should be imposed on the members. They also suggested the board to declare Abad members as withholding agent if the turnover was over and above Rs. 150 million per annum and added that Rs. 10 per Sq.yds should be imposed as land development tax on saleable area.
Abad representatives said that this tax should be applied on all type of construction across the country and the first instalment should be collected at the time of approval and added that NTN certificate may be made compulsory for approval of any proposed building plan even in case of residential house throughout Pakistan. In case there is no defined period for completion of the project/house, total tax must be collected in advance, Abad recommended, adding that as per planning commission of Pakistan, 300,000 (Three hundred thousand) units were built in the year 2014.