ISLAMABAD: During a meeting with a delegation of realtors, Malik Amjad Zubair Tiwana, the Chairman of the Federal Board of Revenue (FBR), assured them that he would address their concerns and provide the best possible facilitation. However, he highlighted that introducing any new tax exemption, concession, or preferential tax treatment may not be feasible. This is due to the stand-by arrangement with the International Monetary Fund (IMF).
The realtors’ delegation, led by the President of the Realtors Association, Sardar Tahir Mehmood, expressed their concerns about the taxation of immovable property. Their concerns were especially relevant in the context of the struggling economy. They said that the taxation measures introduced through Finance Act, 2022 and 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 and either no revision of the valuation table of the properties be made for the time being or an increase may be made at a fair level after consultation with the stakeholders.
FBR chairman assured participants, but the country’s IMF stand-by arrangement might limit addressing new tax concerns. Introducing new tax exemptions, concessions, or preferential treatments might not be possible at the moment. Nonetheless, he directed his team to engage in proper consultations with realtors on this matter.
