FBR chief vows to resolve taxation issues of real-estate transactions

ISLAMABAD: Under the direction of Minister for Finance and Revenue, a delegation of Realtors on Sunday called on Chairman Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana, in order to address and resolve taxation issues concerning real-estate transactions.

The direction was issued by Finance Minister during the 90th meeting of National Assembly Standing Committee on Finance and Revenue, said a news release issued here.

The meeting was presided by the Chairman FBR and attended by the delegation of Realtors led by Sardar Tahir Mehmood, President Federation of Realtors Pakistan, and the team of FBR officers.

Chairman FBR assured the participants that their concerns will be addressed and best possible facilitation will be ensured for removing difficulties arising on account of implementation of tax laws.

He directed his team to ensure proper coordination and consultations with the Realtors in this regard.

The Chairman further pointed out that under the Stand-by Arrangement with International Monetary Fund, any new tax exemption, concession or preferential tax treatment may not be possible at this time.

Realtors’ delegates emphasised the need to rationalize taxation of immovable property in the backdrop of poor health of the economy. They stressed that real estate sector has been the major source of domestic and foreign investment in the past, however, deteriorating economic conditions have pushed people away from investment in this sector.

They also asserted that taxation measures on immovable property introduced through Finance Act, 2022 and Finance Act, 2023 have created a discouraging environment for investment in real estate sector.

The delegation proposed abolition of tax on deemed income from immovable property.

They also requested that there be either no revision of valuation table of the properties for the time being, or increase, if any must be made, at fair level after consultation with the stakeholders. The meeting ended with a note of thanks.