Realtors protest against new tax on private properties

Threaten country-wide protest if ‘unfair levy of tax’ not withdrawn

KARACHI:

The real estate business community has announced protests against the imposition of "unfair taxes" on private properties.

The announcement was made by President of Defence Clifton Real Estate Agents Association (DEFCLAREA) Zubair Baig, along with General Secretary Imtiaz Siddiqui, at a press conference on Saturday. They threatened that the scope of their protest would be widened to the entire country, if the "unfair taxes" were not taken back.

Baig said that the government has abolished the prevailing slabs of Capital Gains Tax (CGT) and increased the withholding period from four to six years.

"Earlier, the CGT used to be charged after a property was retained for four years, but now it is applicable for an indefinite period," he said. "This unjust step has reduced people's trust in the government," he said. "The real estate business has been adversely affected due to the doubling of property taxes."

He said that the DFCLAREA rejects the federal budget for fiscal year 2022-23 in its entirety and demands immediate withdrawal of the taxes imposed on the real estate sector as hundreds of thousands of people associated with the property business might become jobless.

"The government has also imposed a rental income tax on vacant plots, which is a presumptive tax and a modified form of wealth tax," he said. "A person not only pays tax on his income but also pays additional taxes and transfer fees to the federal, provincial and local bodies/societies at the time of property purchase," he said.

He further said: "Taxes are imposed on properties in residential societies even if they are not constructed in the form of non-utilisation fees. With the new taxes, people will be required to pay more rental income tax on their un-utilised properties, which implies double taxation."

 

Published in The Express Tribune, July 31^st, 2022.