Luxury tax on mansions opposed

Traders urge capital’s shopkeepers to follow SOPs

ISLAMABAD: Traders and businessmen in the federal capital on Sunday said that the new federal budget has proposed to impose a heavy luxury tax on houses and farmhouses in Islamabad which was unjustified. Moreover, they urged businesses to observe the guidelines provided by the government to avoid harsh repercussions.

In a statement issued on Sunday, Islamabad Chamber of Commerce and Industry President Ahmed Waheed said that last year, the Islamabad Metropolitan Corporation (IMC) had increased property taxes in Islamabad by 300% while citizens of Islamabad were already paying six different types of taxes on their houses. In these circumstances, he said that there was no justification for luxury tax in Islamabad and the decision should be withdrawn immediately.

Prime Minister Imran Khan had announced an attractive incentive package for the construction industry and it was subsequently included in the budget. But despite the passage of two months, this package has yet to be implemented since no department has issued any notification for its implementation.

He demanded that the prime minister should take notice of this situation and issue immediate orders to all concerned departments to implement the package in letter and spirit.

The ICCI chief said that the growth of the construction industry will help move the wheel of the economy faster as more than 50 allied industries are associated with the construction business and that will help them grow faster.

He said that with the acceleration of construction activities, businesses in the markets will flourish, new investment will get a boost, thousands of people will be employed which will benefit reduce poverty in the society while construction of houses under Pakistan Housing Programme will benefit the low-income people. He, therefore, urged that PM Imran take steps for the immediate implementation of the package.

He further said that a fixed tax for small traders was announced in the budget, but its details have not come out as yet. He demanded from the Finance Advisor Dr Hafeez Sheikh to finalize the fixed tax regime in consultation with the chambers to make it a win-win decision for all stakeholders.

Follow SOPs

Traders’ in the federal capital have urged businessmen to implement precautionary guidelines devised by the district administration even as some rejected the recently hiked property taxes on luxury mansions and farmhouses.

Office-bearers of the All Pakistan Anjuman-e-Tajiran and Traders Action Committee, including Ajmal Baloch and Khalid Mehmood, said that district administration has been working to control the novel coronavirus (Covid-19) pandemic. Hence, they sought cooperation from the shopkeepers and urged them to adhere to all guidelines issued by the government.

The officials further urged shopkeepers not to deal with customers who do not wear face masks and that they should constantly wear masks.

Baloch said that the Karachi Company Markaz - a major commercial centre of the federal capital - in the sealed sector G-9 was a market of middle-class people. He went on to lament that it has now been sealed off along with two sub-sectors of G-9.

Published in The Express Tribune, June 22^nd, 2020.