KCCI slams FBR for slapping tax on immovable property

The Karachi Chamber of Commerce and Industry (KCCI) has slammed the Federal Board of Revenue (FBR) for its “discriminatory attitude” as it has imposed a tax on sale or transfer of immovable property in Karachi while the same tax has been withdrawn in Punjab. KCCI President Mohammed Tariq Yousuf demanded a similar treatment for Section 7E (tax on deemed income) of the Income Tax Ordinance 2001, at par with Punjab, for the rest of the business community across the country. In a statement, Yousuf said “it is a case of sheer discrimination towards the business community of Karachi as a majority of the real estate activities take place in this city, so the business community of Karachi will suffer the most because of the complicated Section 7E concerning the sale or transfer of immovable property.” He pointed out that the Quetta Chamber of Commerce and Industry had got stay order from the Balochistan High Court, which prohibited the FBR from taking any coercive measures regarding Section 7E of the Income Tax Ordinance. Yousuf highlighted that the FBR, in response to the Lahore High Court (LHC)’s judgement, immediately issued a circular on August 15, 2023 wherein it stated that Section 7E would not apply to cases falling within the jurisdiction of LHC. Hence, the conditions pertaining to obtaining a certificate from the commissioner outlined in the circular dated July 21, 2023 will not apply in Punjab. “Another discrimination against Karachi is that the valuation chart for the entire country is based on prices of plots but for Karachi it also includes the constructed area. Karachiites feel that this is being done to deprive the city of future investments.” The KCCI president said that such a discriminatory attitude had continued from time to time with the business community of Karachi, which had also been deprived of cheaper re-gasified liquefied natural gas (RLNG) at the rate of $9 per million British thermal units (mmBtu), which was being offered to businesses in Punjab.   Published in The Express Tribune, August 20th, 2023. Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

source https://tribune.com.pk/story/2431610/kcci-slams-fbr-for-slapping-tax-on-immovable-property