ISLAMABAD, Nov 8 (Pakistan Point News - APP - 08th Nov, 2016 ) : The Sub Committee of the National Assembly Standing Committee on Finance here on Tuesday suggested the committees of both houses for devising a proper mechanism to address the anomalies in property valuation system in the country. The committee met here with Saeed Ahmad Khan Manais in chair and discussed to resolve the issue on imposition of tax and enhancement of fee on real estate transactions.
The member of the committee, Mian Abdul Manan said that the sub committee had heard the suggestions and proposals of representatives of real estates and it would be incorporated to address the anomalies in property rates. He said that it would also recommend to the National Assembly Standing Committee on Finance to form a committee to resolve the differences in property valuation and rates. He said that the committee would also suggest the standing committee to introduce amnesty scheme like stock exchange for the documentation of the real estate sector and to bring the non-filers under tax net.
He said that the real estate sector was contributing US$ 9-10 billion in national economy which was coming through the legal channels. Speaking on the occasion, Abdul Rashid Godil said that appropriate measures were required to enhance the tax net in the country, adding that there were differences in actual property rates and market rates. He said that committee would strive to improve the system and gradually update the value of property in 3 to 5 years time.
The representatives of the real estate sector informed the committee and claimed that anomalies in the new tax system was hampering their businesses. They further claimed that Federal board of Revenue had enhanced the taxes on property by 100 percent and provincial governments in terms of DC rates by 1,000 percent. He urged the government to withdraw all taxes increased in July 2016 and announce a matching scheme like stock exchange for revival of the sector. They informed that country was facing shortfall of about 8.7 million houses and demand of houses was increasing each year. They urged the federal and provincial governments to devise a mechanism to address the differences of property rates.