The government has delayed its decision on a relief package for the real estate sector, aimed at reviving construction activities and promoting economic growth. The package, proposed by the Housing Sector Task Force, includes measures such as reducing taxes on property purchases, abolishing federal excise duty, and providing subsidies on loan interest rates for low- and middle-income groups.
The task force, formed by Prime Minister Shehbaz Sharif, met with him to discuss the proposals, which also include a 5-rupee crore amnesty scheme for first-time homebuyers. However, the Federal Board of Revenue (FBR) has expressed reservations about the proposal, citing concerns that it may be perceived as a tax amnesty, which the International Monetary Fund (IMF) may not approve.
The FBR chairman, Rashid Langrial, has suggested that a 3% duty be imposed on old houses that have been sold multiple times. The task force has also discussed the issue of high interest rates on home loans, which are currently above 17%, despite the central bank’s policy rate being set at 12%.
The government has directed the Minister of Economic Affairs, Ahad Khan Cheema, to finalize the relief package and consult with the IMF. The package aims to promote construction activities, economic growth, and provide relief to the real estate sector, which has been affected by high taxes and slow economic growth.
