Ahsan Zafar Bakhtawari, the President of Islamabad Chamber of Commerce and Industry (ICCI), has called on the government to withdraw Section 7E in order to promote investment in the real estate and construction sector and revive the economy. Bakhtawari stated that the introduction of Section 7E through the Finance Act 2022 has become a major disincentive for investment in the real estate sector, leading to a suffering economy. He made these remarks during a meeting with a delegation of real estate developers and builders at the ICCI.
Bakhtawari also highlighted that after a judgement by the Lahore High Court, the collection of deemed income tax under Section 7E has been stopped in Punjab and urged the government to withdraw it nationwide to address any inconsistencies. The ICCI is working towards this tax withdrawal in the upcoming budget to support the growth of business and investment activities in the real estate and construction industry. Sardar Tahir Mehmood, President of the Federation of Realtors Pakistan, expressed that the higher taxes are discouraging overseas Pakistanis from investing in the real estate sector and called for serious consideration of the issue and the offering of attractive incentives to boost foreign investment and support the fragile economy.
Sardar Yasir Ilyas Khan, former President of the ICCI and CEO of Centaurus, suggested that reducing heavy taxes on the real estate sector can attract billions of dollars in foreign investment and contribute to the revival of the economy. Khalid Iqbal Malik, ICCI Group Leader, emphasized that the real estate sector plays a major role in attracting remittances and foreign investment, but unnecessary taxes have led to a significant decline in these areas. He urged the government to rationalize taxes on the sector, withdraw the tax on deemed income, and create a favorable environment for its growth, thereby stimulating the country’s economic development.