Tax experts advocate for creating a dedicated position – 'Advisor to the Prime Minister on Real Estate and Construction’- in response to the intricate taxation issues plaguing the real estate sector – during the caretaker setup.
The experts contend that the sector's frequent and unpredictable tax policy changes have confused taxpayers. The imposition of higher taxes on property transactions and the recent introduction of section 7E to the Income Tax Ordinance, 2001 have exacerbated concerns, causing alarm among stakeholders.
Experts argue that the complexities of tax matters within the real estate industry demand the insights of a seasoned professional well-versed in the field. Notably, the Federal Board of Revenue (FBR), responsible for revenue collection, lacks a comprehensive understanding of the practical challenges taxpayers face. Consequently, appointing an experienced real estate expert as an advisor is crucial.
Under the proposed framework, the appointed advisor would assume responsibility for all taxation-related affairs within the sector. This role would involve close collaboration with the FBR to make informed decisions promptly. The advisor would also be able to liaise with the FBR and provincial revenue authorities, ensuring efficient coordination and swift action on pressing issues confronting the construction and real estate domains.
Introducing a specialized advisor with profound knowledge of the real estate sector is anticipated to yield more informed policy decisions, streamlined tax regulations, and effective resolutions to the industry's taxation challenges.
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