The Lahore Chamber of Commerce & Industry (LCCI) and DHA Estate Agents Association Friday demanded that like stock exchange, investors engaged in real estate business should be given amnesty so that buyers of property could easily show the sources. The demand was raised at a meeting between the LCCI Vice President Muhammad Nasir Hameed Khan and President of DHA Estate Agents Association Major (r) Muhammad Rafiq Hasrat heading a 30-member delegation here at the Lahore Chamber.
Both the bodies also asked the government to withdraw heavy taxes imposed on the real estate after July 01, 2016 and tax slab should be restored at the level of 30th June that would help revive this vibrant sector. The federal government and provinces should collect tax at same valuation table and FBR must adopt table DC rate with an increase of 10%.
The property owners, who have completed the time span of two years by the end of June 2016, should be given zero gain tax status. Withholding exemption should be increased to 6 million from existing 4 million. It was also demanded that Punjab government should merge CVT and stamp duties and collect only 3% percent single tax.
Nasir Hameed Khan said on the occasion that real estate is a dynamic sector and has the ability to attract huge foreign investment but because of adverse policies and heavy taxation, it is facing catastrophe-like circumstances and struggling for survival. He said that transactions in real estate sector have declined by around 90%. If government withdraws taxes from real estate sector, it would enhance government’s revenue as the number of transactions would be increased, he added.
Published in The Business Recorder, October 22nd, 2016.