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The Pakistan Builders and Developers Association (Abad) has strongly urged the government to abolish the advance income tax on property purchases, terming it a major hurdle for both buyers and investors.
The demand was made during a Senate Standing Committee on Finance meeting chaired by Senator Saleem Mandviwala, where Abad presented its budget proposals for the upcoming fiscal year.
The association also called for the abolition of all taxes imposed on plot purchases and real estate investments, stressing that plots are a basic necessity for the common man.
Abad further recommended a return to a simplified tax collection system based on covered area and demanded the repeal of the controversial Section 7E law, which taxes deemed rental income.
During the same session, the Steel Melters Association also voiced concerns, warning of a steep decline in the steel industry due to widespread tax evasion and smuggling.
Their representative claimed that Rs70 – 80 billion in taxes are being evaded annually and highlighted the issue of 3 – 4 million tons of unregistered scrap in Karachi, along with steel smuggling from Iran.
The association also criticized the Federal Board of Revenue (FBR) for fixing steel prices, arguing that such pricing policies have hurt business operations. FBR officials responded that similar price regulations exist in other sectors.
Senator Mandviwala assured both associations that their concerns would be addressed in the upcoming budget deliberations.
