FPCCI, UBG to reduce construction sector’s taxes to 4pc

LAHORE, Mar 06 (APP):Federation of Pakistan Chambers of Commerce and industry (FPCCI) and United Business Group (UBG) Friday demanded of the government to reduce the taxes under Section 236C and Section 236K to only one percent to revive the construction sector.
Addressing a press conference here at FPCCI Regional Office, the Federation’s Regional Chairman and Vice President Zaki Aijaz and UBG Patron-in-Chief S.M. Tanveer said that one percent should be paid by the buyer and one percent by the seller. Additionally, one percent each for stamp duty and TMA charges should be applied, making the total cost only four percent.
They requested the government to increase the mortgage finance limit from Rs. 2.5 million to Rs. 10 million and to abolish the various categories of filers. They also called for the immediate abolition of Sections 7E and 7F.
Both the trade and industry leaders said that Prime Minister is expected to announce a package for the construction sector, which is a welcome development. They urged the government to implement deep fiscal reforms immediately to prevent the complete collapse of the construction and housing sector.
Zaki Aijaz and S.M. Tanveer described the construction and housing sector as the ‘backbone of the national economy’ and emphasized that immediate fiscal reforms are essential to unlock investment and prevent the outflow of capital abroad.
They added that the government should set a target of constructing 500,000 houses next year. They presented a comprehensive strategy under which 500,000 houses annually would reactivate 78 allied industries and help steer Pakistan back toward “Asian Tiger” status.
They also pointed out that high taxes are causing capital to move to countries such as the UAE. They stressed the need to control the rising prices of construction materials and high energy tariffs so that housing can become affordable for the common man.