ISLAMABAD - Islamabad Chamber of Commerce and Industry (ICCI) here on Wednesday called upon the upcoming government to introduce reforms in taxation system, focusing on direct taxes and rationalization of existing taxes for the revival of national economy.

While, talking to a delegation of Traders Welfare Association, Gulberg, Islamabad, President ICCI Shaikh Amir Waheed said that real estate sector has the potential to uplift the economy, but 23-25 percent cumulative taxes on it were impeding its growth.

The delegation of Gulberg Islamabad along with its president Muhammad Najeeb Malik visited ICCI and discussed the issues being faced by the real estate sector in the country, said  a press release. Amir Waheed  urged the government to revise high taxes on this important sector to facilitate its better growth. 

He said that around 250 ancillary industries including cement, steel, brick, timber and building material was linked with real estate sector and government should create conducive environment for it to turn around the economy.

He said the current taxation system was relying on indirect taxes that burdened the businesses as well as the common man.

He stressed that the incoming government should bring reforms in taxation system to focus on direct taxes with low tax rates that would help in improving the tax revenue.

Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President, ICCI  said that role of estate sector was important for investment promotion, jobs creation and revenue generation.

They emphasized that government should create supportive environment for this sector in order to promote business activities and revive the economy.

They assured the TWA Gulberg Islamabad that ICCI would cooperate with it in resolving key issues of its sector.

Speaking at the occasion, Muhammad Najeeb Malik, President, Traders Welfare Association said that real estate sector could drive the economic development of the country, but budget 2016-17 imposed heavy taxes on it that badly damaged its growth.

He said the high tax rates have discouraged new investment in this sector while many investors were leaving real estate sector that was not good for the economy.

He said PTI had announced to build 50 thousand new houses in the country in case voted to power and added that if government reduce taxes on real estate, it could help it in realization of this goal.

He called upon the government to address the key issues of real estate sector so that it could play more effective role in the economic development of the country.