Sindh abolishes capital value tax on immovable property

Assembly passes law in attempt to boost construction industry, real estate business

KARACHI:

In an attempt to encourage the construction and real estate business, the Sindh Assembly passed a law to 'abolish capital value tax' on immovable property on Monday.

According to the Sindh Finance Amended Bill, the Sindh government will not charge this tax on the leasing, sale and purchase of immovable property.

"The law will not only revive the construction industry but will ensure that other allied industries also thrive," stated the legislation's objectives.

Provincial revenue minister Makhdoom Mehboobul Zaman, who moved the bill, stated that around 40 sectors would directly or indirectly benefit from the new law.

"The Sindh government used to earn over Rs5 billion with this tax, but we have made this law for a good cause, on the directives of Pakistan Peoples Party (PPP) chairperson Bilawal Bhutto Zardari," he claimed, suggesting that the federal government should follow in Sindh's footsteps.

The opposition parties, too, supported the bill, calling it the need of the hour.

Backing the legislation, opposition leader Firdous Shamim Naqvi asserted that Sindh already recovered more property tax than the other provinces, but provided minimal benefits to those linked to the construction industry.

"Owing to the lack of facilities [provided to them] the majority of investors opt to invest in Punjab and elsewhere," he claimed. "The PPP-led Sindh government should also think not just about Karachi, but Hyderabad, Sukkur and Larkana regions as well, encouraging businessmen to initiate mega-projects."

Muttahida Qaumi Movement-Pakistan's Khawaja Izharul Hassan, who also voted in favour of the bill, requested the federal and provincial governments to exempt people from paying withholding tax too.

Harassment of female journalists

Moreover, after the recent emergence of the harassment of several female journalists, the provincial assembly unanimously adopted a resolution condemning the act, while demanding a full-fledged, transparent investigation by the Federal Investigation Agency's cyber-crime wing.

"Female journalists are being victimised by social media accounts affiliated with the ruling party in the Centre [the Pakistan Tehreek-e-Insaf]," stated PPP lawmaker Sharmila Farooqi, who moved the resolution highlighting the danger to female journalists who had been critical of the incumbent government's policies. "These accounts are not just threatening hard-working, respectable female journalists for doing their work, but have also created an unacceptable culture of abuse to try to silence them."

She added that these journalists were being bullied online and also faced the threat of sexual and physical violence, putting their security at risk.

The resolution stated that proper legal action must be initiated against the culprits. It also demanded that the FIA report following the inquiry be made public in order to expose the miscreants.

The house further called for the federal government to ensure freedom of expression, as guaranteed under Article 19 of the Constitution.

Published in The Express Tribune, August 25^th, 2020.