ISLAMABAD: Prime Minister Shehbaz Sharif is expected to approve a package on Thursday (Feb 6) for the development of the housing industry, including rationalization of tax regime for real estate sector.
Sources told Business Recorder that the Prime Minister will chair a meeting on housing sector. The meeting would consider the recommendations of the task force to address critical housing challenges.
The meeting would focus on finalization of a growth framework and financing accessibility for the housing sector.
Housing & real estate sectors: FPCCI proposes cut in taxes to single digits
According to the final recommendations of the task force, it has recommended waiver of sub section 2A of 236C pertaining to 7E declaration & approval by Commissioner, provide basic exemptions for properties valued at up to Rs 10 million, shifting non-resident verification to an online system via NADRA and uniform rate for filers and late filers to remove disparities.
The task force has further recommended abolishing section 7 E of the Income Tax Ordinance; standardizing and rationalizing stamp tax rates across provinces and ICT, abolishing CVT in Islamabad and ensuring uniform taxation policies through the National Tax Council and waiver of wealth reconciliation for investment in real estate and construction sector up to Rs. 50 million.
The task force has further recommended revision of property valuations every three years to reflect market prices and introduction of exemptions for transaction tax for specific categories, such as low-cost housing, government plots, and first-time homebuyers.
The short-term recommendations of the task force also included reduction in policy rate to single digit; resuming the MPMG Scheme to restore developer confidence; reintroducing mark-up subsidies for low-cost housing loan; launching awareness campaigns and financial literacy programs to educate consumers; collaborating with real estate developers to offer mortgage financing options and implementing low /fixed-term loans for periods like 5, 10, and 20 years.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.