Construction: Builders seek exemption from excise and import duties

Ask government to implement national housing policy.

KARACHI:

The Association of Builders and Developers (ABAD) in its 2012 budget proposals has urged the government to remove federal excise duty (FED) from the housing sector, exempt housing machinery from import duty and discourage cement and other related cartels in the country.

Speaking at a press conference on Saturday, ABAD Chairman Babar Mirza Chughtai, along with other office-bearers of the association, said it was high time that the government took the housing sector seriously to power economic growth. “The government must encourage the construction and housing sector to help push forward the stagnant national economy,” said Chughtai.

Highlighting the important points of the proposals, ABAD office-bearers pointed out that clause 12 in the Federal Excise Duty Act 2005 imposed tax of Rs100 per square yard on the development of purchased or leased land for conversion into a residential or commercial plot, which was a burden on builders and property purchasers.

They added that the tax of Rs50 per square foot of the covered area on the construction of residential or commercial units was a liability on the construction sector and was irrational.

In the proposals, the association also urged the government to abolish FED in the presence of Capital Value Tax (CVT) and termed it a huge financial burden on the construction industry. “The government should encourage documented economy by reducing taxes instead of levying more taxes that encourage people to remain part of the undocumented economy,” an office-bearer said.

They stressed that stamp duties and registration fees were high compared to other countries and should be reduced to one per cent to increase registration and documentation of the sector.



Published in The Express Tribune, May 8^th, 2011.