Housing & real estate sectors: FPCCI proposes cut in taxes to single digits

KARACHI: Atif Ikram Sheikh, President FPCCI, has proposed that taxes on housing and real estate sectors should be reduced to single digits; the government should provide all possible incentives for acquiring low cost and affordable houses and complete tax exemption should be given for building or buying a house for the first time by any Pakistani across the board.

However he appreciated the proposed tax measures to facilitate investments into real estate and construction sectors by the general public as 4 percent tax rate on sale and purchase of property has been a major obstacle in the development and commercial activities.

He added that the real estate sector has been stagnant for the past few years; and, the government should present a comprehensive plan for its revival and rejuvenation – so that, buying houses becomes affordable and viable for the masses.

Atif Ikram Sheikh maintained that commercial banks should be encouraged to facilitate housing finance on a priority; the housing package must also include exempting overseas Pakistanis from Withholding Tax (WHT) and three floors of residential houses should be allowed in view housing needs of a population of 250 million.

President FPCCI stressed that the government should move towards vertical development and high-rise buildings to provide decent housing to the masses with decent civic amenities in an efficient time-frame.

Copyright Business Recorder, 2025