Karachi: Pakistan Real Estate Industry Forum (PREIF) has revealed that the new tax collection mechanism is responsible for causing a major shift of investment to the UAE, states a news report.
Reportedly, PREIF demanded that the tax ratio in the proposed amnesty scheme should be brought down to 2% on the difference of DC rate and FBR values. The body also asked the FBR to revise its valuation tables and increase these rates by 10% every year.
In addition to that, PREIF also asked the authorities concerned to bring down the percentage of all taxes including Withholding Tax and Capital Gains Tax as doing so can bring along a 500% to 600% rise in real estate transaction volume, according to a news source.
Representatives of PREIF fear that the future of Pakistan’s real estate sector is in grave danger due to increased taxes and the valuation tables released by the Federal Board of Revenue. The body also emphasised that the booking of plots and houses in many new projects have been canceled by buyers, which also threatens the very existence of the country’s development sector.