ISLAMABAD: Following the direction of Prime Minister Shehbaz Sharif, the working paper for the revival of the real estate and housing sectors has been finalized, first time homebuyers exempted from tax.
According to sources, the recommendations of the task force have been sent to the Prime Minister, and he has decided to convene a meeting on February 3 to review these recommendations.
The sources stated that the proposal includes allowing the construction of additional floors for residential buildings and granting full tax exemptions to first-time homebuyers. There is also a proposal under consideration to reduce the tax rate on property transactions.
The sources further mentioned that the options being considered include abolishing federal excise duties, providing subsidies to low-income groups, and offering loans for home construction.
On the other hand, the Pakistan Business Council has expressed concerns over the task force’s recommendations and has written a letter to Prime Minister Shehbaz Sharif. The letter stated that no changes should be made to the tax policy regarding the real estate sector. The Chairman of the FBR had earlier indicated in a meeting with the Business Council that there might be a reduction in taxes in the real estate sector, particularly for plot transactions, which are facing heavy taxes, and the government is reviewing the matter.
According to the letter, the government should continue its efforts to expose black money in the plot business.
