No piecemeal approach: Businessmen want general amnesty scheme

ISLAMABAD: An ordinance is on the cards shortly for making construction package operational, however, real estate tycoons have asked the government to announce tax amnesty scheme on all kinds of investment for three years period. Such tax amnesty is necessary in a bid to jump-start the recession hit economic activities in the country when the lockdown will be lifted after overcoming this dangerous virus. The demand of general tax amnesty cannot be endorsed in any usual circumstances but the businessmen argue that the unusual situation requires unusual and befitting response to cope with this deadly pandemic of COVID-19 Virus because this kind of severe recession had never been experienced anyone in modern day lives. With this piecemeal approach being adopted by thepolicymakers, the business tycoons suggest that it would be hard to kick-start sluggish economic activities in the presence of fears of FBR. "Different proposals are under consideration that will be forwarded to top functionaries of the government to ensure incorporation of all key points into the draft of ordinance so that the construction industry gets its activities started,” a top FBR official said when this scribe contacted for comments on Monday.

When contacted, FBR’s spokesman Dr Hamid Ateeq Sarwar in his brief reply stated: “The draft ordinance is still under preparation." This scribe sought comments from key players of real estate sector to ascertain exactly what they required to boost up this sector for restoring full-fledged economic activities once the lockdown is over.

When contacted, Chief Executive Officer (CEO) ZEDIM International Pvt Ltd & Faisal Town, Chaudhry Abdul Majeed, said that this pandemic had gripped the whole world and also affected Pakistan’s different sectors very negatively. “We need out-of-box solution. The piecemeal approach will not work to end this lingering recession,” he added.

He said that the government must unveil general tax amnesty for all kinds of sectors for the next three years period as all those should be given opportunity to spend money because usual steps would not help cope with such an extraordinary situation.

This tax amnesty scheme, he said, should be granted not only to construction and real estate but all sectors should be granted general amnesty at this difficult hour of mankind’s history. He said that the real estate and construction could boost up 40 to 50 other industries but there was now need to provide general tax amnesty for every sector.

Talking to this scribe, Muhammad Ahsan Malik, General Secretary Real Estate Consultant Association (RECA), DHA Rawalpindi/Islamabad, said that around one million people were related to this sector in the country, so it should not be ignored. He said that the government had shown carrot to big builders through announcement of construction package but he wanted to ask the question whether the builders/developers would construct buildings in the air because real estate and construction were closely interlinked. So the government should include the real estate sector by incentivising that everyone should be allowed to invest money without difference of any black and white money.

He was of the view that the common buyer of plots were reluctant to invest because of the fear of FBR as they received notices from the tax machinery if they purchased 5 or 10 marla plot in any housing society. He said in such circumstances, people having money started investing money in other businesses such as buying dollars, stocking sugar or wheat instead of investing in the real estate or construction because they did not want to come on the radar screen of tax machinery.

"We don’t support money having connection with terror financing or money laundering, so any proceeds earned through any criminal activities should be dealt with sternly in accordance with law,” he proposed and added the common man must not be penalised.