KARACHI: Association of Builders and Developers of Pakistan (ABAD) has rejected the Federal Budget for the fiscal year 2024-25 and termed it to save government from bankruptcy by pushing all the businesses of the country to bankruptcy, including the construction Industry. Chairman Asif Sumsum, Senior Vice Chairman Ibrahim Habib, Vice Chairman Zeeshan Siddiqui, Chairman Southern Region Mustafa Shaikhani, Chairman Abad Northern Region Sultan Gohar and Hyderabad Sub Region Vice Chairman Kashif Shaikh criticized the government for increasing property tax and sales tax in the federal budget and not abolishing Clause 7-E of the Income Tax Ordinance. Chairman Abad said that the federal budget is a big blow for the construction industry. The proposed financial measures presented in the budget will put a heavy financial burden on the construction industry and other sectors including real estate. Asif Sumsum said that the increase in property and sales tax will not only increase the construction cost but also affect the investment in this sector. The proposed financial measures will prove to be very harmful for the economy of Pakistan. Asif Sumsum said that the increase in sales tax will make construction materials more expensive. Already in the last few years, the prices of construction products have doubled, now they will be more expensive. He said that there is already a shortage of 12 million houses in Pakistan. Rising costs of construction products will increase costs for builders and developers which will inevitably be passed on to home buyers, making homeownership a distant dream for the average citizen. He said that the rulers have pushed all the businesses of the country into bankruptcy, including the construction sector, to save themselves from bankruptcy. The construction sector plays an important role in GDP growth and employment generation. We demanded the government abolish clause 7-E of the Income Tax Ordinance, but we did not hear anything. After the implementation of 7-E, foreign investment in Pakistan has received a big blow. Overseas Pakistanis have started investing in the construction sector of other countries instead of investing in Pakistan. He said that the construction sector is a powerful engine for economic recovery because 70 percent of the investment in the construction sector is for buying construction materials. Abad leaders said supportive tax policies play an important role in economic development. After the presentation of the federal budget, it became clear that the government did not pay attention to our concerns. They demanded the government roll back the increase in property sales tax and abolish 7-E to provide a conducive environment for the construction sector. If a conducive environment is provided, construction activities will increase, which will help the economy grow and provide employment to millions of people.
ADVERTISEMENT
