Budget changes to hit real estate

KARACHI: The recent changes brought through the Finance Act 2018 will adversely impact the real estate business after July 1, said Arif Jeewa, chairman of the Association of Builders and Developers (ABAD).

Addressing a press conference on Tuesday evening, he said the government has not announced any incentives for the business community in the federal budget.

The federal government has abolished immovable property valuation issued by the Federal Board of Revenue (FBR) from the fiscal year 2018/19.

Jeewa said that the federal government has abolished this rate on the basis that the provincial government would match the law at one percent tax collection on fair market value by abolishing DC values.

“The provincial governments have not announced abolishing the DC values in their budgets,” he said, adding that it would complicate the issue.

Another member of ABAD said the government had also set up a directorate for taking over the properties not declared on fair market values, but the directorate would only be operative when the FBR notify rules.