FBR Chairman Assures Realtors of Addressing Taxation Issues of Real Estate Sector

June 14, 2024

FBR Chairman Assures Realtors of Addressing Taxation Issues of Real Estate Sector

At Makani Marketing, we are committed to keeping our clients informed about the latest developments in the real estate sector. Recently, Federal Board of Revenue (FBR) Chairman Malik Amjad Zubair Tiwana met with a delegation of realtors to discuss and address their taxation-related concerns. This meeting followed a directive from Finance Minister Ishaq Dar, who instructed the FBR to resolve these issues promptly.

Realtors’ Concerns and Proposals

During the meeting, the delegation of realtors highlighted the need to rationalize taxation on immovable properties, especially given the current economic climate. They emphasized that the taxation measures introduced through the Finance Acts of 2022 and 2023 have created a discouraging environment for real estate investment.

Key Proposals by Realtors:

Abolition of Tax on Deemed Income: The delegation proposed eliminating the tax on deemed income from immovable property, arguing that it hinders investment.
Revision of Valuation Table: They suggested either not revising the valuation table for properties or making any necessary changes only after thorough consultation with stakeholders. This is to ensure that any increases are fair and justifiable.

Chairman’s Assurances

FBR Chairman Malik Amjad Zubair Tiwana assured the realtors that their concerns will be taken seriously. He committed to facilitating the removal of difficulties related to the implementation of tax laws and directed his team to engage in proper consultations with the real estate community.

Limitations Due to IMF Arrangement

However, the Chairman pointed out that under the current stand-by arrangement with the International Monetary Fund (IMF), introducing any new tax exemptions, concessions, or preferential treatments might not be feasible. This arrangement places constraints on the government’s ability to offer tax relief.

The Way Forward

At Makani Marketing, we understand the impact of taxation policies on the real estate sector. We are hopeful that the FBR’s commitment to addressing these issues will lead to a more favorable investment climate. Ensuring open dialogue between the government and realtors is crucial for the continued growth and stability of the real estate market.

Stay Informed with Makani Marketing

We will continue to monitor this situation and provide updates on any significant developments. Stay tuned to our blog for the latest news and insights into the real estate sector. For personalized advice and expert guidance, contact Makani Marketing today.

By staying informed and understanding the evolving taxation landscape, real estate investors can make better-informed decisions and navigate challenges more effectively. At Makani Marketing, we are here to support you every step of the way.