Businessmen oppose imposition of tax on large houses

[Lahore_Real_Estate]

By Moonis Ahmed

KARACHI: The business leaders have expressed their reservations over the imposition of tax on large residences, as suggested by the President Asif Zardari in a recent meeting with trade representatives.

The prominent business leader and President, Pak-India Chamber of Commerce and Industry (PICCI), S M Muneer, said while speaking at a dinner hosted by him, Mian Zahid Husain and Khalid Tawab, in honour of outgoing Administrator DHA, Brig Khalid Masood Tirmizi, and incoming President, Clifton Cantonment Board, Brig Anis Ahmed.

He said that following sheer objection by the business community to impose Flood Relief Tax, Zardari suggested imposition of a house tax on big houses, from 1000 yards and up, in order to raise Rs 8 billion for flood affectees.

The business representatives in the meeting however, opposed the levying of house tax as retired and pension-dependent people allegedly live in some of these houses.

Sources told Daily Times that the government of Sindh has decided to levy a one-off tax on large urban properties in urban areas of Sindh on directives of the federal government to raise money for flood relief.

The percentage of the tax has not been decided yet. The government is also considering levying tax on properties in capital and other major cities.

Sindh excise and taxation department property wing has completed a survey for imposition of one-off tax over 150-yard to 3000-yard houses, flats and lands.

According to learned sources, the practice in the province has been initiated on special directives of the President.

Muneer said that firm measures would have to be taken by the government to rehabilitate the flood affectees and revival of the economy. He strongly opposed to get into the shackles of IMF and World Bank once again. “We have to pay $8 billion as debt servicing next year and I ask government where this amount will come from”.

He advised the government to stick to the options of writing off loans, waiver of interest and re-scheduling previous loans, as no other option is supposedly left.

He further advised the government to minimize the non-developmental expenditures, withdraw massive perks and privileges to ministers, assembly, government officers etc. to raise funds for rehabilitation of the IDPs.

He said that he committed with the government to provide 100,000 bags of relief goods to the IDPs and so far 25,000 bags have been sent already and 1,000 bags are being sent on daily basis.

The President, Pakistan Businessmen and Intellectuals Forum, Mian Zahid Husain said that business community is doing a lot for the relief of flood affectees and its efforts would remain continued to provide maximum possible assistance to the IDPs.

Farooq-uz-Zaman Khan Chairman Association of Builders and Developers (ABAD) while talking to Daily Times said, “Levying of tax on large urban properties in urban areas of Sindh may not hit property business directly, but it would have been better to bring agriculture, the most earning and producing sector, into tax net rather than property sector.”

He said that the property business is already feeling the heat and just low-end business activity is being witnessed in limited regions, more taxes would not be absorbable by the industry.