| Islamabad: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Acting President Muhammad Suleman Chawla has urged the government to withdraw Section 7E imposed on immovable properties to strengthen investors’ confidence, according to news published on August 22.
Read: FBR exempts tax on transfer of agricultural properties
As per the acting president of the FPCCI, the business, industry, and trade industry of Pakistan has been adversely affected by the introduction of Section 7E of the Income Tax Ordinance, 2001. Mr Chawla opined that the newly imposed section has merely generated PKR 10 billion in the first year, which is negligible when compared to the loss caused by this measure. He stated that the move has negatively influenced domestic and overseas Pakistanis’ interest in the real estate sector, which will leave lasting consequences.
Read: Section 7E will not be applicable within LHC’s jurisdiction: FBR
Moreover, FPCCI Acting President Muhammad Suleman Chawla stated the withholding tax on buying and selling of immovable properties has been revised from 1% to 3% under Section 236C (Advance Tax on sale or transfer of immovable Property) and 236K (Advance Tax on purchase or transfer of immovable property) respectively. He was of the view that an increase in the withholding tax is proving to be counterproductive and the tax rate should be revised downward with immediate effect. |
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