Government has ruled out tax amnesty for reality sector
Rumor about Real Estate Tax Amnesty Scheme
Real estate transactions have greatly reduced due to new property tax amendments. Due to low activities and reduced income, real estate stake holders and realtors recently held massive protests across the country. The common talk of the town was that government is encouraging the realtors to held protests so that government can take back taxes and offer amnesty scheme, as provincial governments have collected less revenue due to low property transactions. But ultimately these rumors died out as no amnesty was offered.
Government is not offering property tax amnesty
Haroon Akhtar Khan, special assistant to Prime Minister on Revenue has totally ruled out the possibility of any tax amnesty scheme for real estate sector. Haroon Akhtar Khan has told Tax Officials on his visit to Large Taxpayers Unit Karachi that government is against any tax amnesty scheme for property sector. According to him government will work with property dealers and lawmakers to bring the undocumented investments in reality sector to tax net.
Pakistan reality sector without tax amnesty
Since last month property prices are stagnant. But now price will fall as fast as they were falling when new tax amendments were introduced. Within 2-3 months property prices will bottom out. Prices will fall to the level where genuine buyers with white money can afford to buy property. Unfortunately, this property price fall will be the worst in history of Pakistan as it will wipe out the investments of developers and investors. But once this cycle is complete, Pakistan property sector will be stable with gradual gains.
Shrewd investors are flocking to Gwadar
Investors are still not short of good investment options. After the first container ship left Gwadar Port for Africa, investors flocked to Gwadar. Within a week property prices in Gwadar have increased by 50%. Gwadar is indeed the game changer and land of promises but we should also keep in mind that investments in Gwadar will mature by 2025. Gwadar is indeed world’s best real estate investment hotspot but it will return profits on long term investments.