Lahore, January 15, 2018 (PPI-OT):Real Estate players have sought the help of the Lahore Chamber of Commerce and Industry for revival of dying businesses. A delegation of Estate Agents Association, led by the President Federation of Realtors Pakistan Maj. ® Rafiq Hasrat, Monday called on the LCCI President Malik Tahir Javaid and informed him of the issues being faced by the real estate sector. Convener of the LCCI Standing Committee on Real Estate Amir Qureshi and Co-convener Babar Ismail Butt also spoke on the occasion.
The delegation informed the LCCI president that heavy taxation has affected the real estate sector badly which is not only an important source of revenue for the government but is also providing direct or indirect employment to the millions of people. He said that the real estate sector could generate huge revenue for the government once it is declared as an industry.
He demanded to reduce taxes on services of real estate agents as they are already overburdened by FBR taxes and resulting in less collection. A regulatory authority should be established for real estate industry. He said that realtors are ready to pay rational taxes but recovery of their two percent of deal commission should also be ensured through legal binding, he added.
The LCCI President Malik Tahir Javaid said that real estate is an important sector of the economy of Pakistan which should be protected through conducive policies and soft taxation regime. He said that this not only attracts local investors but also expatriates and overseas Pakistani’s.
Malik Tahir Javaid said that teal 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 real estate sector is the second largest job provider and its crisis would lead to the unemployment.
He said that government cannot achieve its economic targets without due support of the business community. He said that not breathing space has been left for the business community because of the severe issues like bank account attachment, political instability and heavy taxation on the trade and industry. The LCCI Vice President said that transactions in real estate sectors have been fallen by around 90%. If government withdraws taxes from real estate sector, it would enhance government’s revenue as number of transactions would be increased.
He said that withholding tax on bank transactions has also affected the real estate sector hard therefore it should be withdrawn immediately. He also urged the federal and provincial governments to bring parity in the table list for the real estate sector. The LCCI President said that General Sales Tax on real estate sector should not be more than 2%. He said that commission of real estate dealers should be protected through legal cover. He assured the delegation that the genuine issues of real estate sector would be taken up with the Prime Minister’s Advisor for Finance Miftah Ismail and other concerned authorities.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan