Taxes on real estate sector hindering economic growth

ICCI says business of around 250 ancillary industries has slumped

Our Correspondent February 24, 2018
ICCI says business of around 250 ancillary industries has slumped PHOTO: REUTERS

ISLAMABAD: The real estate sector has the potential to promote investment, industry, economic growth and employment; however, the government has imposed heavy taxes on it in the 2016-17 budget, which has affected the sector's growth, said Islamabad Chamber of Commerce and Industry (ICCI) President Sheikh Amir Waheed.

He was addressing a delegation of Real Estate Consultants Association DHA Islamabad, which had called on ICCI to apprise officials of the problems being faced by the real estate sector.

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Waheed said that the growth of around 250 ancillary industries including cement, steel, brick, timber, and building material was dependent on the real estate sector, but the increase in taxes has led businesses of all allied industries to slump.

He urged the government to cut heavy taxes on this sector in the coming budget for its revival. The ICCI official assured the association that ICCI would fully cooperate in resolving their key issues.

The real estate sector plays an important role in the economic development of any country, but heavy taxes on this sector in Pakistan have damaged its growth, said Association of Builders and Developers (ABAD) Chairman Arif Jeewa.

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He said that many investors were now leaving the real estate sector.

Also speaking on the occasion, Real Estate Consultants Association DHA Islamabad President Munawar Heral said that since July 2016, the government has increased 100% taxes on the real estate sector that caused 50% to 60% reduction in its business activities.

Published in The Express Tribune, February 24th, 2018.

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