FPCCI backs proposed tax cuts to boost real estate

KARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has expressed support for the proposed tax measures aimed at encouraging investments in the real estate and construction sectors.

The current 4.0 per cent tax rate on property transactions has been a significant barrier to growth and commercial activity, according to the FPCCI. President of FPCCI Atif Ikram Sheikh said that the real-estate sector has remained stagnant over the past few years. He urged the government to introduce a comprehensive plan for its revival, emphasising the need to make homeownership more affordable and accessible for ordinary Pakistanis.

Sheikh proposed reducing taxes on the housing and real estate sectors, alongside offering incentives for acquiring low-cost and affordable housing. He also called for a complete tax exemption for individuals building or purchasing their first home, regardless of their location or background.

Highlighting the importance of accessible housing finance, he recommended that commercial banks be encouraged to prioritise housing loans. Sheikh suggested that the government exempt overseas Pakistanis from withholding tax (WHT) on property transactions and allow the construction of up to three floors in residential houses to address the housing needs of Pakistan’s 250 million population.

The FPCCI president also stressed the need to shift towards vertical development by promoting the construction of high-rise buildings. This, he argued, would help meet the growing demand for housing while ensuring the availability of modern civic amenities within an efficient timeframe.