islamabad - President, Islamabad Chamber of Commerce and Industry Sheikh Amir Waheed has said that the government should abolish  taxes on the purchase of property, including Capital Value Tax and stamp duty and impose only 1 percent tax rate.

He was talking to the General Secretary, Real Estate Consultants Association, DHA, Islamabad Muhammad Ahsan Malik during a meeting held at ICCI on Saturday.

He said that the Prime Minister had announced to reduce tax rate on the purchase of property to only 1 percent along with abolition of DC rate and FBR rates while provinces would also be recommended to adopt the same tax rate for property.

He said that government should also end capital gain tax slabs on purchase of property and introduce 5 percent flat CGT. He said the period of gain tax should also be reduced from 3 years to 2 years. He urged that provincial governments should also abolish CVT and stamp duty on purchase of property and impose only 1 percent tax rate.

Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President Islamabad Chamber of Commerce and Industry assured that ICCI would fully cooperate with Real Estate Consultants Association (RECA) DHA Islamabad in resolving key issues of its members.

Highlighting major issues of real estate sector, Muhammad Ahsan Malik, General Secretary, RECA said that cash of clients was deposited in the accounts of Real Estate Consultants and tax was deducted on the same. He urged that government should remove withholding tax on the cash withdrawals of Real Estate Consultants.

He said government should double or triple tax rate for non-filers and allow them to purchase property.

He said Overseas Pakistanis should be considered as filers because they were filing returns in their host countries.

He said government should legalize 2 percent service charges of Real Estate Consultants as they were paying services tax in addition to income tax and it was difficult to determine services tax without giving legal cover to 2 per cent service charges.