ISLAMABAD: The government is likely to give tax incentives to builders and developers in the budget (2023-24) to encourage investment in build-up properties including houses, flats/apartments and discourage non-filers involved in these transactions.
On Monday, a delegation of the Association of Builders and Developers of Pakistan (ABAD) called on Federal Minister for Finance and Revenue, Senator Ishaq Dar at the Federal Board of Revenue (FBR) on Budget 2023-24 proposals.
According to sources, the government has indicated raise in the tax rates including advance income tax rates for both filers and non-filers engaged in immovable property transactions.
ABAD demands barter-import of construction materials
Major budget proposals of the developers and builders included a reduction in tax rates for the filers, but enhanced rates for the non-filers during transactions of the build-up properties.
Second, tax incentives for allied industries like steel, cement, etc. Tax incentives are also proposed for the construction sector. The regulatory duties and additional customs duties on the import of steel should be abolished with incentives to related alleged industries.
Third, the land and build-up properties should be separated for taxation purposes.
The land and build-up properties should not be merged for the taxation of the real estate sector.
The rates of filers should be reduced but increase the rates considerably for the non-filers of the income tax returns. All member builders and developers are filers of income tax returns.
Fourth, the developers and builders also proposed scheme for attracting investments of the overseas Pakistanis to facilitate investment in build-up properties like apartments and houses in Pakistan through normal banking channels instead of Hawala and Hundi.
SAPM on Revenue Tariq Mehmood Pasha, Chairman RRMC Ashfaq Yousif Tola, Chairman FBR, and senior officers from the FBR attended the meeting.
The delegates from ABAD apprised the finance minister of the challenges being currently faced by the construction industry and presented their proposals for the upcoming federal budget.
The delegation also assured to support the government in its efforts for overcoming the economic challenges and to boost the economic and business activities in the country.
Finance Minister Dar appreciated the proposals presented by the delegation and assured them that the government is taking concrete steps to overcome the economic challenges and for strengthening the economy of the country.
He further reiterated that the government will try to provide a business-friendly budget in order to support the masses and for the economic progress and development in the country.
The delegation thanked the finance minister for considering their budget proposals.
The delegation included Altaf Tai chairman ABAD, Arif Yousaf Gewa former Chairman ABAD, Khawar Munir Senior Vice Chairman ABAD, Nadeem Gewa, Vice Chairman ABAD, Raheel Rinch Chairman South Region ABAD, Askari Agha, and Sufiyan Adiya.
Copyright Business Recorder, 2023
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