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ABAD welcomes acceptance of proposal by PM on property tax

ABAD welcomes acceptance of proposal by PM on property tax

ISLAMABAD: Association of Builders and Developers of Pakistan (ABAD) Chairman Arif Yousuf Jeewa has welcomed the announcement of unified property tax by Prime Minister Shahid Khaqan Abbasi and said that they were glad to hear that the Prime Minister accepted their proposal regarding property tax.

Taking to Customs Today , the ABAD chairman said that ABAD was working since the last year to connivance the government that three-tier property tax i.e. DC value, FBR value and open market value is not good for the country and national economy.

Now the government has realized that proposal of ABAD was in the right direction as through this proposal the government would be able to increase revenue collection, he said, adding that now people will be forced to register their properties instead of purchasing properties on power of attorney. He said it will generate more revenue and more people will come into the tax net benefitting the government in the log-run.

Moreover, foreign investors, who were reluctant to invest in real estate because of three kinds of property valuation, will be comfortable to invest due to unified one percent tax on property transaction. He said that the government should also allow overseas Pakistanis to invest in build-up properties under the tax amnesty scheme so that construction industry will witness good growth and other allied industries will also get boom, which will boost national economy.

Speaking about the prohibition of purchasing properties more than Rs 4 million by non-fillers, he said that the government should clarify its stance regarding this proposal whether such person will be allowed to purchase properties after filling tax returns or the government will charge 5 percent tax on such purchase.