KARACHI: Adviser to the Prime Minister, Haroon Akhtar has assured the Association of Builders and Developers of Pakistan (ABAD) for resolving the valuers of the State Bank of Pakistan in property prices and nominated 14 member committee headed by FPCCI President.
ABAD has strongly rejected the government’s efforts to give extra-ordinary discretionary powers to the income tax commissioner for determining value of property terming it opening of another gateway of corruption.
Chairman ABAD Hanif Gohar said, “we have discussed the issue in details with FBR officials and Haroon Akhtar on Monday, but the decision would be taken after another meeting to be held on Friday or Saturday. A committee has been set up to discuss the issues in FPCCI.
However, Khalid Tawab, Senior Vice President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI) said the meeting will discuss the land valuation issue in FPCCI prior to the sitting with Haroon Akhtar. However, he claimed that the issue would be resolved soon.
Hanif Gohar warned the government to avoid unnecessary heavy taxation on construction sector and raw materials including cement and steel, as this act will not only lead to massive flight of capital from this sector but also effect growth of tax net.
Adviser to the Prime Minister, Haroon Akhtar, and Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan in Islamabad held a meeting with FPCCI led by its acting President Khalid Tawab. Zubair Tufail and ABAD Senior Vice Chairman Arif Yousuf Jeewa and others were also present during the meeting.
The government, by amending section 68 (2) of the Income Tax Ordinance 2001, wants to enhance discretionary powers of the tax officials, which is against the announced policy of the Federal Board of Revenue and this amendment, if carried, would open flood gates of corruption, which is not acceptable to construction sector and also detrimental for the prosperity of the country.
He said unjustified FED, imposed in federal budget, will have drastic impact on construction sector as the cement is already being sold at exorbitant prices in Pakistan in comparison with other parts of the world.