ICCI calls for rationalization of taxes on construction industry to save investors from default
ISLAMABAD ( Web News )
Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry (ICCI) said that the construction industry plays a key role in the development of the economy as the growth of business activities of over 70 allied industries is dependent on this industry. However, the levy of new taxes on the construction industry has plunged it into great difficulties due to which unemployment is expected to increase, so the government should rationalize high taxes on this industry to save it from further troubles. He said this while addressing the business community during his visit to the under construction J7 Group’s Icon five-star hotel Royal Swiss along with a delegation. Fayyaz Awan, Project Director of J7 Group along with his team warmly welcomed the ICCI delegation.
Ahsan Bakhtawari said that many businesses in the construction and real estate sector have already closed due to the increase in taxes and if these taxes are not rationalized, more businesses of this sector could be closed. He said that instead of increasing taxes, the government should consider providing attractive incentives to the construction industry, which will attract more investment to the country, increase business activities and revive the overall economy.
Fayyaz Awan, Project Director, J7 Group, said that if the high taxes imposed on the construction sector are not withdrawn, many investors in this sector would face default. He said that after the announcement of the construction package, investors have invested billions of rupees in the construction sector, but the imposition of high taxes has made the future of construction projects uncertain. He said that the Lahore High Court has issued a stay order against the imposition of tax under Section 7E, so it is the right time for the government to withdraw this tax across the country as it will have disastrous consequences on the property business. He said that hike in taxes has pushed up the prices of other construction materials, including concrete and cement, due to which the cost of construction projects has increased manifold and investors are suffering. He said that the withholding tax has also been increased on sale & purchase of property to which business activities in this sector are slowing down. Due to this situation, the country’s tax revenue will decrease instead of improving. He strongly demanded that in order to save the construction industry from further difficulties, taxes should be reduced appropriately in consultation with the investors of this sector so that the construction Industry can play its active role in driving the economy.
Former President ICCI and Secretary General UBG Zafar Bakhtawari said that Pakistan needs to build more five-star hotels in major cities including Islamabad to promote tourism in the country. However, with the existing taxes, it is very difficult to promote investment in this sector, so it is better that taxes should be revised in consultation with the stakeholders so that the government’s revenue is not affected and the construction industry achieves better growth.
Raja Muhammad Imtiaz, Khalid Chaudhry, Malik Mohsin Khalid, Babar Chaudhry, Nisar Mirza, Nasir Chaudhry and others were in the ICCI delegation.