KARACHI:
The government claims that taxation and significant changes in policies are necessary to boost the country’s economy. However, the new taxes are a huge blow to real estate and associated sectors like construction. The new taxes will hurt business activity and future investments. These taxes will reduce profits, halt revenue generation and impact employment, pushing people into poverty. The heavy taxation might also encourage charlatans to hold back documentation, which can cause more discrepancies in the economy.
Inflation coupled with more taxes will only harm industries and add to the economic problems. The worth of the real estate sector in Pakistan is nearly $400 billion and it can help with economic recovery and progress. However, with inflation and high taxes, steel, cement, gas, banking, chemicals and many other industries have also raised prices. This has hindered new investment plans.
Real estate developers have contributed to the country’s development through projects, investment, employment opportunities, and environmental and philanthropic endeavours. However, the new taxes will jeopardise the real estate sector’s ability to continue development with the same momentum. Therefore, the government must revisit its taxation policies.
Maryam Nawaz Kayani
Islamabad
Published in The Express Tribune, August 18th, 2022.
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