Pakistanis will be given another chance to whiten moveable and immoveable properties (foreign & local) through amnesty scheme, expected to be announced in coming months. Speaking at a meeting held at ABAD house here, Dr Miftah Ismail, Advisor to PM on Finance, Revenue and Economic affairs said that government was planning to announce another amnesty scheme, shortly. He said the draft for amnesty scheme would be finalized in coming months, which would document Benami properties, Hawala money, moveable and immoveable properties (foreign & local), etc.
This move appears to be another chance for the Pakistanis to whiten moveable and immoveable properties (foreign & local) before commencing Automatic Exchange of Information (AEOI) project with the members of Organization of Economic Cooperation and Development (OECD) by FBR from September 2018. Miftah said that country had to maintain 8 to 10 GDP growth for at least a decade to successfully address poverty and unemployment issues; adding that government was expecting to witness six per cent GDP growth by the end of current fiscal year.
Moreover, he said that government had prioritized exporters' rebate issue, which hopefully be resolved till February 2018 and added that exports had started progressing and it witnessed 15 per cent growth in December. He also vowed to restrict budget deficit at five percent, reduce tax rates on individuals and broaden the tax base during his short tenure as Advisor to PM on Finance, Revenue and Economic affairs, saying that he was confident not only to achieve revenue target of Rs 4000 billion but to control budget deficit at five percent along with reduction in tax rates on individuals and broadening of the tax base.
He also announced to constitute a board for the execution of low-cost housing project and appointed Patron-in-Chief ABAD Mohsin Sheikhani as the member of the board. He said that the Fixed Tax Regime for builders and developers was a good scheme and invited ABAD body to visit his office in Islamabad for further discussion in this regard.
He dispelled the impression of giving extra favor to the Chinese entrepreneurs in CPEC, saying that local builders and developers will be given level playing field in this multi-billion dollar project and offered ABAD members to work in the construction of CPEC Economic Zones. In his welcome address, Chairman ABAD Arif Yousuf Jeewa said that local industries increased the rates of their products whenever the government imposed Regulatory Duty (RD).
He said that the CPEC would bring progress into the country but local builders and developers should be given proper share in CPEC. He lamented that tax relief given to Chinese investors for import of machineries would badly affect local investors and they would not be able to compete with Chinese investors. Furthermore, Arif Jeewa said that the Federal Board of Revenue (FBR) was harassing builders and developers and no positive change was being brought to taxation system and added that the low cost housing schemes announced by ABAD would have far-reaching impact on national economy and the government should support this scheme.
Arif Habib, Chairman Arif Habib group urged Dr Miftah to exempt the property up to Rs 15 million from wealth reconciliation as it would encourage financial institutions for housing finance and added that the government, which had launched export refinancing scheme, should also introduce housing finance scheme for the period of 15 to18 years. He strongly recommended the government to revive the Real Estate Investment Trust (REIT) for small investors.
Mohsin Sheikhani said that Pakistan was facing the shortage of 12 million housing units across the country and if the cost of a housing unit was considered Rs 2 million, this industry could fetch USD 218 billion. He said that builders and developers would not ask the government to provide land for low cost housing schemes neither would ask for any relief. He demanded to establish a board for low cost housing, which would not only promote the national economy but provide jobs to 15 million people.