KARACHI: Chairman, Association of Builders and Developers of Pakistan (ABAD) Asif Sumsum has announced to go to court against heavy and unreasonable taxes imposed on the construction industry and real estate in the budget 2024-25 saying that the budget will be very destructive for the construction and real estate.
In a statement, Chairman ABAD said that after this budget, it is not only difficult but impossible for the commonman to build his dream house. Can you say that a house built on a plot of 60, 80 and 120 yards is the luxury? This decision has stopped investment in the construction and the real estate sectors, local industries related to construction will also be severely affected, as a result millions of people will become unemployed. Asif Sumsum said that if the burden of taxes is not reduced, the investments made by overseas Pakistanis in this sector will be transferred to other countries, which will reduce the foreign exchange inflow. He said we had serious reservations about the budget presented in the National Assembly. We had submitted our proposals and requested to the government for the improvement of the economy, but instead of giving relief to the construction industry they imposed more taxes which affected the construction industry. It will prove to be the last nail in the coffin. Chairman Abad said that it is completely unfair to levy up to 60% tax and 3% Federal Excise Duty (FED) in the budget, while already 6 to 7% on the sale and purchase of property is in place. He said that whatever suggestions we gave to the government were to increase investment in the country and to increase foreign exchange. We are lovers of Pakistan, we want Pakistan to develop and bring prosperity to the country. But no attention is paid to our suggestions. The construction sector and real estate sector is the most important part of the country’s economy, if they get damaged, it will have negative effects on the country’s economy. After the implementation of 7-E, remittances from overseas Pakistanis have reduced drastically. He said that due to heavy taxes on the construction sector, it has become impossible for the citizens of Pakistan to build their own houses. There is already shortage of more than one crore houses in Pakistan. The basic responsibility of the government is to provide housing facilities to its citizens. If the government cannot fulfil this responsibility, then it should provide protection to the construction sector.
Asif Sumsum said that after this decision of the government, there will be more increase in slums, Karachi city is already full of slums. The chairman said that if the slum population increases by 50 percent, crimes increase. He appealed to the government and the authorities to withdraw the taxes illegally imposed on the construction sector, to remove the taxes on 60, 80, 120 yards houses and 1200 square feet residential flats. Exemption should be given so that the country’s economy could develop, the nation becomes prosperous and Pakistan’s economy can get rid of the IMF.
