Both Business Recorder and Zameen.com have recently published reports about a ‘amnesty scheme’ to be announced in 2020 for the real estate sector. When you read more, you realise that it may be a bit of an exaggeration to call it a real estate amnesty scheme, however.
The government has plans to introduce an incentive package for construction sector in order to boost it and some real estate measures are going to be a part of it. With all that said, there were some interesting thing in the news:
The government may revise some of the FBR taxes downwards.
News reports of government might not ask for the source of investment. That, I think, is just the realtors day-dreaming. With the IMF and FATF pressuring Pakistan, there is no way they are going to do that
It is possible that the government will, however, allow overseas Pakistanis to buy constructed properties in Pakistan after payment of 1-2% in taxes
Government may introduce a fix tax regime for developers and builders
A 90% tax reduction may be given to the NPHP low-cost housing scheme
Although the news was not clear on this but there is going to be a new central authority for builders and developers?
Simplified tax return forms will be introduced
Builders and developers will not be required to operate as withholding agents
What do other forum member think of all this? Will this help real estate? I mean the next 6 months have been pretty much tanked due to the coronavirus issues but could this trigger an eventual recovery?