FBR, Realtors discuss tax issues on property transactions

August 07, 2023 (MLN): Following the instructions of the Finance and Revenue Minister at the 90th National Assembly Standing Committee meeting on August 4, 2023, a meeting was held at FBR Headquarters in Islamabad to resolve tax issues related to real estate transactions, said a press release issued yesterday.

The meeting was presided by the Chairman FBR, Mr. Malik Amjed Zubair Tiwana, and attended by the delegation of Realtors led by Mr. Sardar Tahir Mehmood, President of Federation of Realtors Pakistan, and the team of FBR officers.

Realtors’ delegates emphasized the need to rationalize taxation of immovable property in the backdrop of the poor health of the economy.

They stressed that the real estate sector has been the major source of domestic and foreign investment in the past, however, deteriorating economic conditions have pushed people away from investment in this sector.

They also asserted that taxation measures on immovable property introduced through Finance Act, 2022 & Finance Act, 2023 have created a discouraging environment for investment in the real estate sector.

The delegation proposed the abolition of tax on deemed income from immovable property. They also requested that there be either no revision of the valuation table of the properties for the time being or an increase, if any must be made, at a fair level after consultation with the stakeholders.

Chairman FBR assured the participants that their concerns will be addressed and the best possible facilitation will be ensured for removing difficulties arising on account of the implementation of tax laws.

He directed his team to ensure proper coordination and consultations with the Realtors in this regard.

The Chairman further pointed out that under the Stand-by Arrangement with IMF, any new tax exemption, concession, or preferential tax treatment may not be possible at this time.

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