RCCI Asked to Withdraw Proposed Tax on Rental Income of Real Estate

RCCI Asked to Withdraw Proposed Tax on Rental Income of Real Estate

Rawalpindi chamber of commerce and Industry has demanded to withdraw the tax on rental income of properties that is proposed in fiscal budget 2022-23.

It is said that the tax will affect the real estate sector heavily as more than forty industries are interlinked.

RCCI president Nadeem Rauf, group leader, and the former president issued a joint statement and said that it is a need time to enhance the construction industry’s incentives to boost investment and business activity.

It was mentioned in a statement that the proposed tax on rental income would increase the problems between property owners and tenants.

Furthermore, the tax officers are given the privilege of fair value assessment, but it is feared that it will only increase the chances of bribery.

Nadeem Rauf also pointed out many issues in the statement. For instance, the government should consult stakeholders to fix small traders’ tax amounts. The experts have also shown reservations about section 7E in the finance bill. The statement says that the Federal government is not authorized to levy tax on property capital value.

While referring to the Punjab budget, Nadeem Rauf has demanded to allocate a huge budget for the projects like Ring Road Rawalpindi, Defense chowk, and Kacheri Chowk. It is pertinent to note here that the projects have been delayed for a decade due to budget.

Sohail Altaf, Group Leader, said that a tax ombudsman should be appointed at the provincial level to resolve tax-related issues in Pakistan. He emphasized that to resolve the tax-related issue, Punjab revenue authority excise and taxation ombudsman appointments are the need of time.

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