Lahore: Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain proposed the imposition of taxes on vacant plots to promote construction, adding that builders should get tax breaks to boost the construction of plazas to tackle the shortage of housing, according to news sources.
Hussain stated that the
construction industry – once considered to be immune from recession – is
plummeting owing to various reasons including high taxation, heightened raw
material prices and the FATF. These taxes include soaring DC rates withholding
tax and capital gain tax etc. Likewise, $5 billion are poured in the
construction sector annually and it supplants 43 allied industries, ensuring
provision of jobs to millions and contributes to GDP, he said, reportedly.
As per the reports, he maintained that lack of proper regulatory framework also leads to fraudulent activities by shady individuals. This was depriving the masses off their valuable savings. Thus, posing a threat to the real estate and construction sector.
Hence, the solution
lies in devising appropriate regulatory mechanism to secure the interest of
masses, increase employment opportunities and tax the sector relative to its
potential, he said.
