KARACHI: Chairman Association of Builders and Developers of Pakistan (ABAD) Asif
Sumsum has vehemently criticized controversial tax policies of Federal Board of Revenue (FBR)
and has demanded of the Caretaker Government to abolish 7E section of Income Tax Ordinance
2001 so that the second job provider and major tax contributor construction industry can flourish
and strengthen the national economy.
Chairman ABAD said that the controversial implementation of 7E section of Income Tax
Ordinance 2001 for filers and non-filers in two provinces is stopped while the sword of this
controversial section is still hanging on two other provinces and other parts of the country.
Controversial implementation of section 7E has created dispute, which is denting growth of
construction industry and the national economy, he said adding that center of major construction
activities are Karachi and other parts of Sindh. We must remember that Karachi is contributing
68 percent of total revenue of the country and if the construction industry in Karachi and Sindh is
affected, the government will be deprived of major tax collection.
He said that the FBR is adamant to continue section 7E but do not want to realize the ground
reality for example if they want to collect more Rs. 1000 through this controversial section, they
will lose Rs. 5000 because many of builders and developers have stopped working of their
projects and new investors are not willing to invest further, which is detrimental to the national
exchequer.
Asif Sumsum said that the Caretaker Government should stop implementation of section 7E of
Income Tax Ordinance 2001 forthwith to save construction industry and thousands of jobs of
skilled, semi skilled and unskilled workers. He also demanded of the government to take all
stakeholders into confidence before imposing any law for tax collection otherwise such laws will
backfire like section 7E of Income Tax Ordinance 2001. If the government will not take action to
stop implementation of 7E, ABAD will be forced to organize a press conference with other
business communities; he said adding that the press conference will not be to pressurize the
government but to save the national economy by the possible loss.
