Chairman, Housing and Construction Sub Committee of the Karachi Chamber of Commerce and Industry (KCCI), Munir Sultan has urged the government to initiate a new scheme of providing around 100,000 low-cost housing units in collaboration with the private sector.
Talking to newsmen, he said that if the government plans on this line, housing shortage would be curtailed considerably in the next five years. Quoting the World Bank report he said that the country has been facing 7 million housing unit's shortage. He emphasised the need to introduce low- cost housing schemes for 38 percent white-collar workers. Munir Sultan said under the scheme land should be provided on the same price on which government provides land to KDA, CDA and other development authorities.
He appreciated the exemption from tax up to 2010 on sale of property to Real Estate Investment Trust (REITS) in Federal Budget 2007-08. He said that it would attract around Rs 50 billion in construction sector in the next three years.
He pointed out that in the budget proposal of 2005-06 the housing and construction sectors demanded this tax exemption that has now been granted. Munir Sultan said that increase of investment in construction sector would create more jobs.
He said that the government introducing a new kind of investment opportunity in capital market through REITS and this move would provide opportunity to small investors earn profit.
He said that the government has provided enough incentives to promote real estate investment trust. Now REITS has been exempted from tax on distribution of profit up to 90 percent.
He said that the biggest incentive that will promote real estate investment trust is exemption to those from tax unto 2010 who sell their property to REITS. Munir Sultan appreciated the government's decision to provide 37,000 apartment of government servants on ownership basis. This number of apartments should be increased to 50,000 by next year, he added.