Govt urged to withdraw CVT on immovable property transfer

[Lahore_Real_Estate]

KARACHI: The Association of Builders and Developers has urged the government to withdraw Capital Value Tax on transfer of immovable property even on 1500 sq feet flats and bring it back to the position of July 01, 2009.

In a letter to Prime Minister Yousaf Raza Gillani, Chairman ABAD Farooq-uz-Zaman has said that keeping in view the imposition of CVT and the resultant hardships for the masses, steps should be taken to withdraw this notification should be taken bank to its earlier position, when the housing units on 1500 sq ft and below, were exempt from this levy. He said that the step would help the government’s effort to revive the economy and most importantly, providing roofs over the head of the shelter less masses of Pakistan.

Farooq said that it has been a major story in the press for last two weeks that the government has imposed the CVT on transfer of immovable property even on flats which are 1500 sq.ft. and below. This levy is unprecedented and never in the history CVT on flats which are 1500 Sq. Ft. and below was levied as the main target is the poor segment of the nation.

The steps taken by the Government, which is no doubt a representative of the poor masses, would certainly deprive the shelter less of a shelter of their own. The vision of Roti, Kapra aur Makan is being compromised. Government should, in the interest of common man, withdraw this notification, he urged. Chairman ABAD said that the office of the Additional Commissioner-E, of Inland Revenue, Federal Board of Revenue has issued a Notification No. AC-E/E&C/DIV-III/2009-10/220 dated 23 December 2009 in this regard.

In order that law takes its course, the notification has to be approved by the Law Ministry and as per reports the Ministry has declined to approve the said notification on the grounds that it is mandatory that any notification has to be ratified by the Parliament of Pakistan.

Even though the said notification has neither been ratified by the Parliament or Provincial Assembly, nor has it become a part of the Finance Act, the Government of Sindh has imposed the Capital Value Tax on all residential flats of all size, irrespective of a minimum covered area. He said that this imposition would certainly increase the hardships of the lower income segment of our society which is already reeling under the increased cost of living and is finding it rather impossible to have a shelter of their own. He demanded the government to take its decision back to the position of 01 July 2009 when the housing units on 1500 sq. ft and below, were exempt from this levy. staff report