ISLAMABAD: Pakistan’s tax chief revealed on Thursday that the government has successfully rejected the IMF’s pressure to impose regular income tax rates on the real estate industry, which continues to benefit from a “much-favourable” environment.
The remarks regarding the real estate industry were made by Malik Amjad Zubair Tiwana, Chairman of the Federal Board of Revenue, at a Senate Standing Committee on Finance hearing. The seamless functioning of the standing committee’s activities is a result of the Pakistan Peoples Party’s assistance to the government in passing the budget.
The committee’s deliberations moreover shown that the budget was crafted in secrecy, given that a minimum of two ministries or their associated parties contended that they were not cognizant of modifications made to tax legislation concerning their topics under the Rules of Business.
In response to a query from Senator Faisal Vawda regarding capital flight following modifications to the capital gains taxes levied on the real estate industry, Tiwana stated, “The real estate tax regime is still much-favourable.”The Chairman’s remarks demonstrate that the government can protect holy cows to whatever degree it sees fit a privilege denied to Pakistan’s underprivileged salaried class.
