Govt urged to introduce soft taxation regime for real estate sector
Soft taxation regime for Real estate sector
LAHORE: The government must formulate special policies and introduce a soft tax regime for the country’s real estate sector.
This was the result of the speeches made at a seminar on houses and real estate at the Commercial and Industrial Industry of Lahore (LCCI).
The seminar was attended by LCCI interim President Faheemur Rehman Saigal, Al-Jalil Developers Chairman Nasrullah Waraich, Federal Task Force on Housing Manager Zaigham Rizvi, renowned architects Professor Jason Pomeroy, Yaqoob Tahir Izhar, Akber Sheikh and Mian Abuzar Shad.
The experts noted that in Pakistan the population is growing rapidly, resulting in the expansion of residential areas and increased the need for food and other necessities.
LCCI interim president Faheemur Rehman Saigal said Pakistan is the only country in the region where residential areas are spreading every day, adding that no fundamental change in construction technologies has occurred since independence.
Citing an example from Singapore, he said in 1965-66, Singapore was one of the worst slums in the world. “But they’ve been working on it and now they have great community structures.”
He urged the government to take immediate measures to deal with the uncontrolled expansion of residential areas and consequent downsizing of the agricultural areas.
Saigal further stressed the need to bring the real estate sector within the formal economy, as it was the second largest sector in the context of employment.
The acting president of LCCI said real estate is an important sector of the economy that needs to be protected by favorable policies and a mild tax regime. “The sector has the potential to attract not only local investors but also foreign Pakistanis and foreign investors.”
He said the fungal growth of housing societies is consuming the agricultural land and is an agricultural land, Pakistan cannot afford it, suggesting that this issue could be addressed through horizontal housing developments.
“Despite being a dynamic sector with the capacity to attract huge foreign investment, the real estate sector has faced unfavorable circumstances and struggled to survive due to redundant policies and heavy taxation.”
He said the government will not be able to achieve its economic goals without the support of the business community, which suffers severely from the severe issues like attachment of bank accounts, political instability and heavy taxation on trade and industry.
Govt urged to introduce soft taxation regime for real estate sector
- Published in Business, ECONOMY, GOVERNANCE, HEADLINES, Lahore Chamber of Commerce and Industry, LCCI, policies, President, Real Estate, real estate sector, seminar, TAX POLICY, TAXATION
Hafeez Shaikh stresses need to incentivise real estate sector
Adviser to Finance Minister Dr Abdul Hafeez Shaikh on Monday stressed the need to encourage the real estate sector to attract investment from the Pakistani diaspora, reported Pakistan.
Presiding over a meeting to analyze the different financial models for “Naya Pakistan Economic Zone next to Islamabad Highway” in Islamabad, the councilor assured of the government’s support to the development of the housing sector as it has the potential to provide employment opportunities to the youth, Radio Pakistan reported.
He ordered the concerned officials to hold another meeting with all relevant stakeholders this week to analyze any financial plans prepared by the Naya Pakistan Housing Association (NPHA) for the above-mentioned project.
Earlier, NPHA (r) Lieutenant General Ameer Ali Haider informed the meeting about the general details of the project.
It has been reported that the project will be completed in three to four phases, starting from Faizabad and ending near Rawat.
“The Border Workers Organization is working with NPHA on the feasibility of the project. The aim is to complete the first phase after one year under the public-private partnership regime. Different financial models are being explored for the completion of the project in consultation with the State Bank of Pakistan and Federal Board of Revenue, ”he added.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.