Islamabad: Real estate stakeholders have requested the government to retract the taxes introduced on property transactions through Budget 2019-20; thereby offsetting some of the impact of the ongoing pandemic caused by novel coronavirus on the country’s real estate sector, a news source reported.
According to details, negotiations have been underway between real estate stakeholders, the federal government, and the Federal Board of Revenue (FBR) on the matter. These individuals have been pushing for a reduction in the duration during which the Capital Gains Tax (CGT) is applicable on the transfer of properties.
Currently, for a plot sold within eight years of its
purchase, the CGT can be as high as 20%. However, realtors have suggested that the
duration be reduced to three years, as was the previous practice.
The government had introduced these measures in a bid to increase its revenue by as much as PKR 44 billion. However, the realtors have contended that in view of the economic slowdown caused by the novel coronavirus situation, a certain amount of relief should be provided to the real estate industry.
