Overseas Pakistanis refuse to pay in US dollar for plot purchases in new Islamabad sectors
Overseas Pakistanis are advocating for a waiver on withholding tax (WHT) and Federal Excise Duty (FED) for first-time plot purchases in the new sectors of the federal capital.
They are also unwilling to pay in the US dollars.
The demand comes in light of recent developments regarding the Capital Development Authority (CDA) and its Sector C-14 balloting.
Tax experts emphasized that successful overseas applicants for Sector C-14 are requesting that the government allow payments in Pakistani rupees instead of U.S. dollars, as many find it challenging to remit funds abroad due to high banking fees.
The CDA had previously communicated that payments must be made in U.S. dollars through a banking channel within 30 days of the notification sent on January 15.
In response to these concerns, the federal government has formed a task force to recommend improvements for the real estate and housing sector. A meeting chaired by the Prime Minister is scheduled for today to discuss over 40 recommendations from the task force.
Tax consultant Shahid Jami highlighted that overseas Pakistanis often face difficulties in obtaining refunds for withholding taxes because they typically do not have taxable income in Pakistan. He pointed out that many countries offer tax waivers for first-time homebuyers, a practice that is currently absent in Pakistan.
Read more
Sindh budget highlights: no new taxes, entertainment duty ended
Govt imposes over Rs70 billion new taxes through mini-budget
Jami called on federal and provincial governments to provide practical incentives for overseas buyers, suggesting the establishment of a dedicated Overseas Housing Authority to facilitate land acquisition and the development of housing schemes for Pakistanis living abroad.
The push for tax waivers reflects the growing need to support overseas Pakistanis who contribute significantly to the economy through remittances.
For the latest news, follow us on Twitter @Aaj_Urdu. We are also on Facebook, Instagram and YouTube.
Comments are closed on this story.