The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and United Business Group have called on the government to cut taxes on property transactions to boost the struggling construction and housing sector.
Speaking at a press conference at the FPCCI Regional Office, Regional Chairman and Vice President Zaki Aijaz and UBG Patron-in-Chief S.M. Tanveer recommended reducing the tax under Sections 236C and 236K to just 1% for buyers and 1% for sellers. They also suggested applying 1% each for stamp duty and TMA charges, bringing the total transaction cost to 4%.
The leaders urged the government to increase the mortgage finance limit from Rs. 2.5 million to Rs. 10 million, abolish multiple filer categories, and eliminate Sections 7E and 7F. They welcomed the anticipated announcement of a government package for the construction sector but emphasized the need for immediate fiscal reforms to prevent further decline.
Describing the construction and housing industry as the “backbone of the national economy,” the leaders proposed constructing 500,000 houses annually. They said this strategy could revive 78 allied industries, curb capital outflow to countries like the UAE, and help Pakistan move toward “Asian Tiger” status.
They also highlighted the need to control rising construction material costs and high energy tariffs to make housing more affordable for ordinary citizens. Immediate reforms, they stressed, are critical to unlocking investment and stabilizing the housing sector.