ISLAMABAD: July 26,2023: Thousands of property developers turned out for protest in Islamabad against hike in tax on the real estate sector. Islamabad Real Estate Agents Association (IEAA) had given a call for protest in Islamabad against hike in taxes on the real estate sector.
IEAA chairman , Sardar Tahir Mahmood who was flanked by other office bearers of IEAA presented the case against new revised taxes on the real estate sector at a press conference held at National Press Club (NPC) and later led the protest outside NPC .
Addressing to the protestors whose number was in thousands , Sardar Tahir Mahmood said the real estate sector holds key role in growth of the national economy besides providing employment to millions of Pakistanis. He maintained that it’s the real estate sector which makes at least 45 major industries operational besides playing a key role in tax collection to make Pakistan stable economically. Sardar Tahir Mahmood argued that the real sector of Pakistan is already facing a bad patch and instead following a reasonable tax regime to make it grow again the government has increased tax on it in the new budget.
Other office bearers of IEAA also shared the same views and demanded of the government to review its policy of over burdening the real estate sector of the country.
In the budget , the government has revised tax on sale and purchase of property from 2 % to 3 % for filers and for non-filers, the tax rate surged to a staggering 10.5%. Similarly, sellers faced higher taxes, with filers and non-filers being charged 3% and 7%, respectively.
Moreover, the introduction of “Deem Rental Income” was strongly criticized by Mehmood, who claimed it to be a brutal financial blow to the real estate sector. He argued that this additional tax burden would lead to a decline in property transactions, further exacerbating the negative impact on the industry and government revenue.
Ahsan Zafar Bakhtawari, President of the Chamber of Commerce and Industry, stood in solidarity with Sardar Tahir Mehmood, endorsing his position and condemning the government’s approach towards the real estate sector. Mr Ahsan said he has already written a letter to Prime Minister Shahbaz Sharif, urging the government to reconsider the tax policies.
In response to questions about the next course of action, Sardar Tahir Mehmood firmly stated that if the government did not address their concerns, they would resort to a nationwide strike. He warned that real estate workers, protesting outside the Press Club, were prepared to block major arteries and roads across the country as a means of peaceful protest.