Over 2000 real estate agents in Karachi staged a protest on Saturday, October 29, 2016 over the implementation of the new tax regime. These agents reached Karachi Press Club in the form of different rallies and held a press conference there, voicing their demands. Although a majority of these agents were registered dealers of Bahria Town Karachi, property agents and brokers from all major areas and associations of the city also participated in the protest.
Looking at how peacefully this rally was organized and how media also depicted it as a peaceful protest rather than a nuisance for civilians, the participating agents deserve appreciation. In addition to holding an effective demonstration, these agents also had a clear set of demands, which represented their collective interests and were also valid on legal grounds.
These agents in Karachi, just like property brokers from all other cities of Pakistan, have reservations against the new tax system. However, unlike the rest, they believe that the tax applicable on properties offered on instalments should be collected only on the amount paid by the buyer up to that period of time and not on the property’s total price.
In addition to that, the protestors also demanded that FBR valuation tables for housing societies located in the rural areas should be set according to their respective neighbourhood and not according to any other criteria. Furthermore, these agents have also alleged that the new tax regime has been imposed to channel investment to Dubai and it is being done intentionally.
To better understand what these agents are planning to do if the government does not keep their promise of fixing the tumultuous situation in the real estate sector, I spoke with Bahria Dealers Association Karachi Chairman Raheel Haroon. Haroon exclaimed that if required, the agents hold the right to challenge the new rules the FBR has set in court.
He also stressed that collecting tax revenue from property transactions in a province should be the role of the provincial government as it is one of the main sources of revenue the provincial government can utilize to inaugurate development projects within the area. Haroon also highlighted the fact that the new tax legislations are yet to be approved by the Senate and the National Assembly, thus the FBR has no right to harass property dealers yet.
Commenting on the future plans of the association, Haroon said that his particular association which is being joined by property agents from all over Karachi and is effectively connected with similar bodies in all major cities of Pakistan, will have a meeting with Chief Minister Sindh to voice their demands. The association can also stage sit-ins for an indefinite period of time.
Here are some images taken from the rally:
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The country has witnessed a massive decrease in home remittances, largely due to the tax on real estate crisis. This will destroy the economy of Pakistan unless this PML government stops its looting of population by this new taxation. All this Nawaz government wants is too loot as much money before 2018 elections. See this link on the looming disaster that is happening due to these idiots: https:// www. thenews. com.pk/print/158140-Home-remittances
It seems you are incurring losses in black money market.
I think this is a good step towards stability. The black money was being pushed in real state and the prices were shooting like any thing and went even beyond the modern cities of Western world. This artificial price hike was forcing people to stop investment in this sector because every one could speculate that this artificial price hike is going to crash at any time. Hence the wise people stopped investing in this sector and some of them even started investing, real state sectors, in countries with moderate price.
Government should enforce laws to increase price according to international trends, which is slow but steady rise and not an increase of 10-25% in just one year.
2000 people unbelievable reporting!!
and why r my replys not being posted! ??
Due to dharna in Islamabad, no one will listen them
50-60 BROKER INVESTOR MAFIA IS HIJACKING CRORE+ PPL FOR THEIR OWN MUTUAL BENFIT AND BLACK MONEY
Agreed with Rizwan bhai , these broker are a mafia , you will not find real property buyer there. Broker are just playing with each other and are raising property price as much that a civilian citizen cannot afford. At the moment it is not real price of property it is hijacked price. They are may not be 2 % of total Pakistani population but they made property out of range to a citizen.
I strongly support Govt tax decision and effort to bring this mafia in tax net.
As mentioned in previous blogs broker are closing the property shops , So, hope it will bring price in real value and affordable for all.
Agreed with Rizwan bhai , these broker are a mafia , you will not find real property buyer there. Broker are just playing with each other and are raising property price as much that a civilian citizen cannot afford. At the moment it is not real price of property it is hijacked price. They are may not be 2 % of total Pakistani population but they made property out of range to a citizen.
I strongly support Govt tax decision and effort to bring this mafia in tax net.
As mentioned in previous blogs broker are closing the property shops , So, hope it will bring price in real value and affordable for all. .
DEAR ZAHID BHAI
THIS IS ABSOLUTELY TRUE, WE NEED TO HIGHLIGHT THIS POINT ON ALL FORUMS….AS THIS IS THE ONLY CHANCE WE MIGHT GET TO BUY OUR OWN HOMES…WE ALL NEED TO STICK TOGATHER AND SHOW THIS MAFIA THAT THEY CANNOT HIJACK LIVING OF MAN YCRORE PPL…..THESE ARE ARTIFICIALLY INFLATED PRICES AS PLOT AND HOUSES WERE BEING SOLD FROM ONE INVESTOR TO ANOTHER AND NO ONE WAS LIVING IN THAT HOUSE…WHILE GENUINE BUYERS WERE ON RENT AND PAYING HEAVY PRICES BECAUSE OF THIS MAFIA… IN SHA ALLAH A CRASH IS IMMINENT IN THE PROPERTY SECTOR AND 50 TO 60% PRICE DROP IS EXPECTED IN NEXT FEW MONTHS….AS NO BUYER IN MARKET AND BROKERS ONLY LYING THAT THE PRICES ARE RISING TO STOP THIS COLLAPSE
I do agree with you. In all countries of the developed world, one can buy a house in 60 salaries i.e in 5 years but with current price hike artificially made by brokers, a middle man can not buy a house even with 600 salaries. Prices should be brought to a level where a middle class family earning Rs 50,000 per month can buy a house in 60 salaries to meet international standards and to give them sense of security and peace. With in last five years the prices of most of the areas have tripled, which is unrealistic and because of influx of black money in the real state sector and brokers are playing the game.
It’s a shame that government that does not provide the basic necessities to its people have nerve to impose taxes on them. What has government done in Bahria Town for its people?
Also, as far as I concerned, UAE is a hostile government to Pakistan and Pakistanis. We should be doing everything to discourage our capital going to that country.
Investor is spending money in property and has raised its price to 200%. Isn’t it a tyranny. So, they should stop making politics in it. Property price has gone out of range from a common person.
I think, this is by far the best decision by the government in favor of genuine buyers who want home to live in and not to just earn money.
These property tycons are just some selfish bunch of craps who are creating a price hype in the market. And making it impossible for a common man to live in his own house.
I wish Govt never listen to them and sustain the decision.
Nuke their gathering for good riddance for entire Karachi. Declare them economic terrorists!
This is the only decision I have fallen in love with government.
in all its years this is the best decision by the govt and govt should not back down from its stance ….and not give in to this BLACKMAILING OF THE BROKERS
Property tax is levied globally so why are Pakistanis resisting it?
I’m sorry to say but none of you have been able to understand the real issue. The problem is not with the in position of taxes but the confusion which has been created. The confusion is due to DC rate and FBR rate we can that there are two methods in order email transaction. Secondly how will they evaluate gain I can challenge that none of you can explain that. How the tax on gain will be paid. So as a buyer you pay tax on DC value and seller will pay tax on FBR. how will we calculate the actual value when there are 2 methods of calculating the value and how will be calculate the gain when there are two values. I am saying again and again but no one reply me may be because all of you just keep ow 2 words genuine buyer and non genuine buyer you don’t know the mechanics about how will be transaction conducted. If the government keep the same taxes and just relinquish the confusion about the process things will get better.
Can any one please tell me the reason of increasing tax on real estate.
I heared that our authority want to invest in Dubai real estate ,that’s why it increases tax in our country…is it true??
Can any one please tell me the reason of increasing tax on real estate.
I heared that our authority want to invest in Dubai real estate ,that’s why it increases tax in our country?
I want to buy property in dha karachi.
Can any one please tell me the reason of increasing tax on real estate.
I heared that our authority want to invest in Dubai real estate ,that’s why it increases tax in our country…is it true??