Realtors reject massive property tax hike

Say abrupt FBR measures will stall real estate activity, undermine investor confidence

RAWALPINDI:

Khalid Imran Chaudhry, Founder of the Estate Agents Association Progressive Alliance Group, Islamabad, has outrightly rejected the decision to impose a 500 per cent increase in property taxes in Islamabad, terming it oppressive and unjust, and has demanded its immediate withdrawal.

In a statement, he said that the unrealistic and impracticable increase in official property valuation rates imposed by the bureaucracy is tantamount to crushing the business community and amounts to an act of economic sabotage against the country.

Chaudhry added that an increase of up to 500 times above actual market values in official rates poses a serious obstacle to foreign investment, while placing the livelihoods of millions of individuals associated with the real estate sector at grave risk.

According to him, such decisions will encourage investors to move their capital abroad, resulting in substantial losses to the national economy. He urged Prime Minister Shehbaz Sharif, Interior Minister Mohsin Naqvi, and Chairman FBR Rashid Mahmood Langrial to immediately reverse the increase, stressing that any new valuation table should be formulated in consultation with all stakeholders. Chaudhry further appealed to CDA Chairman Muhammad Ali Randhawa to reduce transfer fees and introduce facilitative measures for investors. He noted that following the FBR's decision, there is severe unrest within the business community. Abrupt and harsh tax policies, he warned, undermine investor confidence and have a negative impact on business growth.

He explained that such measures raise operational costs for both small and large businesses alike. The newly imposed property taxes and the FBR's enhanced reporting and verification requirements may significantly slow down real estate transactions, as both buyers and sellers are deterred by the additional financial burden and complex procedures.