The Government of Pakistan is facing a lot of pressure to reverse real estate sector taxation measures from the influential quarters.
As per the official data released by the Federal Board of Revenue, The government is planning on creating a proposal of not charging up to 20% capital gains tax (CGT) if a plot is sold after keeping it for 1,095 days instead of the current period of 2,921 days. If any moveable asset is sold before the duration of eight years, it will be subjected to up to 20% of tax gain.
In reference to the reversal of real estate sector taxation, members of the cabinet have been visiting the FBR headquarters to get relief. These government officials also tried to convince FBR not to ask the source of investment.
FBR acting chairperson Nausheen Javed hasn’t clarified either FBR would decide to reverse the changes or withstand the pressure and continue with the current regime.
Furthermore, The PTI Government had extended the holding duration from three years to eight years for open plots in order to claim tax exemption from 20% CGT. For the constructed property, the government extended this period from three years to four years.
During a recent meeting chaired by Adviser to Prime Minister on Finance Dr. Abdul Hafeez Shaikh, the business communities are directed to seek input for the economic relief package.
The finance ministry issued a statement that said, “The business community requested that it should be facilitated in looking after their daily-wage earners over the next two to three months and be provided with assistance to carry on their business with improvement in liquidity position.”
Hafeez Sheikh remarked that in the current crisis, the main agenda of the government is to contain the virus, help to maintain enough cash in hand for the common man, and the provision of healthcare facilities, essential food items at affordable prices.