Association of Builders and Developers of Pakistan (ABAD) has expressed serious concerns over the reports regarding abolishment of Fixed Tax Regime (FTR) from builders and developers in coming budget 2017-18. Speaking to the media, Mohsin Sheikhani, Chairman ABAD said that if FTR was abolished in next budget then it would create negative impact on the construction industry, which would ultimately open doors for corruption and vowed to launch nationwide agitation, if the minimum tax was revived again.
He urged the FBR to drop the said proposal and make it effective for at least three years to yield fruits from it, adding that the board used to collect Rs 80 million as minimum tax from builders in past and after the enforcement of FTR, ABAD members now deposited Rs 150 million as 5 percent advance tax under the FTR during last four months, which reflected a total FTR of Rs 3 billion, while the ABAD had also committed that this sector would pay Rs 2 to 3 billion of the tax.
He was addressing a press conference at the ABAD House flanked by Senior Vice Chairman Muhammad Hassan Bakshi, Chairman Southern Region Muhammad Ayoob and Ex. Senior Vice Chairman Arif Yousuf Jeewa. He replied that FBR prior to implement this new mechanism brought the issue of new property valuation, which virtually blocking the way of new construction for almost six months and they could get NOCs for new construction from January 2017.
On the other hand, ABAD members are involved in 25 percent of all construction activities while other players are responsible for 75 percent construction throughout the country. He said that ABAD members were keen to pay taxes and the government should extend FTR for at least three years instead of taking any decision on the basis of four months.
He appealed to Federal Finance Minister Ishaq Dar, Special Assistant to Prime Minister Haroon Akhtar and Chairman FBR Dr Irshad to continue FTR for at least three years as this system would be the source of development for the construction industry which would ultimately create positive impact on national exchequer and employment generations as well.
Senior Vice Chairman ABAD Muhammad Hassan Bakshi said that ABAD had proposed the government to implement a single property valuation system based on market value all over the country instead of present 3 tier system and tax should be only one percent instead of three percents of tax, which would not just increase the government revenue manifolds but financial institutions would also begin finance housing.