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Tag: ABAD

  • FBR not to ask source of money invested for housing projects by December 31: MTO Chief

    FBR not to ask source of money invested for housing projects by December 31: MTO Chief

    KARACHI: Federal Board of Revenue (FBR) will not ask source of money to be invested till December 31, 2020 in a new housing projects, Abdul Hameed Memon, Chief Commissioner, Inland Revenue, Medium Taxpayers Office (MTO) said on Wednesday.

    “This is a unique program announced by the Prime Minister of Pakistan. The tax rates have also been reduced under this package,” he said while addressing an event organized by Association of Builders and Developers (ABAD).

    However, he said that those who availed the scheme will require to complete the project by September 2022.

    He urged the ABAD members to avail the opportunity as growth in the construction sector would generate employment.

    He said that the government through amendment in tax laws had announced the package for the construction sector. “The package has two types of benefits: immunity from questioning the source of investment; and reduced rate of income tax in the shape of a fixed tax regime for builders and developers.”

    The chief commissioner said that the package would help in enhancing activities in the construction sector and result in significant economic growth.

    Earlier, Abdul Hafeez, Commissioner Inland Revenue, MTO gave a detailed presentation to builders and developers on the immunity from Section 111 of Income Tax Ordinance, 2001. This section attracts penal action for persons who conceal assets from tax authorities.

    The commissioner said that the section 111 would not apply to an individual if the person deposited the money in a new bank account up to December 31, 2020 or having ownership / title of the land invested as on April 17, 2020.

    In case of a company or an Association of Persons (AOP), the section shall not apply if a single purpose company or AOP is registered between April 17, 2020 and December 31, 2020.

    The commissioner outlined other exemptions and benefits under the tax package as the investors would have exemption from the requirement of withholding tax on purchase of building material except cement and steel.

    They will also have exemption from the requirement of withholding tax on acquisition of services relating to construction except those from companies.

    The persons, who are engaged in low cost housing projects, will be granted 90 percent reduction in fixed tax liability, the commissioner said.

    Besides, dividends paid by builder or developer companies shall not be liable to tax and there shall be no withholding on the payment of these dividends, he added.

    Chairman Association of Builders and Developers of Pakistan (ABAD) Fayyaz Ilyas has demanded of the Federal Government to extend date of registration for Incentive Package of Naya Pakistan Housing Scheme upto 31st December 2021 and also extend time period for the completion of housing projects under this scheme.

  • ABAD hails tax incentives for construction industry

    ABAD hails tax incentives for construction industry

    KARACHI: Mohsin Sheikhani, Chairman, Association of Builders and Developers of Pakistan (ABAD) Mohsin Sheikhani on Friday termed the incentives announced by Prime Minister Imran Khan as a historic package for the construction industry of Pakistan and this package will prove a turning point for the economy of Pakistan.

    Commenting on incentives announced for construction sector, Mohsin Sheikhani said that ABAD was demanding incentives for the construction sector because more than 70 allied industries are depending on construction sector. He said that we are indebted to Prime Minister for reviving the construction industry.

    He said that Prime Minister has announced that no question will be asked about investment in construction sector this year, Fix Tax Regime (FTR) for construction sector, 90 percent Fixed Tax will be waved off if invested in Naya Pakistan Housing Scheme, With Holding Taxes waved off, Federal Government will discuss with Provinces regarding sales tax reduction. Punjab and KPK have reduced sales tax to 2 percent, no Capital Gain Tax will be charged in case of Family house sell, Rs 30 Billion Subsidy for Naya Pakistan Housing Scheme, Status of Industry to Construction sector and much awaited Construction Industry Development Board to be established for development of Construction Industry.

    We wholeheartedly grateful to the Prime Minister and also request him to announce an universal policy for approval of building plans throughout Pakistan so builders and developers can start construction as early as possible.

  • Meeting discusses tax rates on immovable properties

    Meeting discusses tax rates on immovable properties

    ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.

    The adviser met a delegation of Association of Builders and Developers of Pakistan (ABAD) in this regard.

    The delegation was represented by Hassan Bakhshi, various proposals were presented that could enhance and boost the property business in the country and improve tax collection for the government.

    The proposals were regarding taxation rates on property, building height restrictions in Karachi and rationalization of Property valuation tables and some other policy related exemptions that could help in smooth functioning of the property business and further accelerate the economic activity in the country.

    The adviser to the Prime Minister discussed the proposals in detail with the delegation and after taking the views of the Chairman FBR, assured the members of the delegation that all possible help will be provided to the sector keeping in view the principles of equity, transparency and fair play.

    The adviser said that he realizes the importance of the business and wants to engage more with the sector for better facilitation and understanding.

    He directed the delegation to further refine their proposals for a positive outcome and meet again in the second week of January so that the matters could progress ahead.

  • ABAD, CDC sign MoU for digitalization of land record

    ABAD, CDC sign MoU for digitalization of land record

    KARACHI: Association of Builders and Developers of Pakistan (ABAD) and Central Depository Company Pvt Limited (CDC) on Thursday signed an historic Memorandum of Understanding (MoU) for the digitalization of land records through Land Repository System, which will be the first ever system of Pakistan and it will cater the need of Electronic Registration of Land and Land Titles.

    The signing ceremony was held at ABAD House here on Thursday.

    Vice Chairman ABAD Abdul Kareem Adhia and Badiuddin Akber CEO of CDC signed the MoU witnessed by Chairman ABAD Muhammad Hassan Bakshi, Chairman CDC Moin M Fudda, Senior Vice Chairman ABAD Anwar Dawood, Chairman Southern Region Ibrahim Habib, senior officials of CDC and members of ABAD were present on this occasion.

    Addressing the ceremony, Moin M Fudda congratulated ABAD for initiating such a gigantic work. He said that electronic registration of land documents will help abolish possibilities of fraud and corruption.

    He said that this system will help not only to purchaser of property but will help grow national economy as it will abolish corruption being witnessed in offices of Registrars at present. He said that almost 60 percent of all cases in various courts are of fraud in lands.

    He pointed out that every third person in Sindh is victim of land fraud and the new Electronic Registration System- Land Repository System will help remove any fraud.

    Chairman ABAD Muhammad Hassan Bakshi said that ABAD is working for the legal and bona fide construction activities in Pakistan and some people are accusing that builders are cheating people but 98 percent of ABAD members are doing their legitimate business. He lamented that ABAD members are wrongly accused of illegal construction activities as more than 5000 buildings are being constructed illegally and without any approval of competent authority while all members of ABAD are getting approvals before starting construction of their buildings.

    He said that Advisor to Sindh Chief Minister Murtaza Wahab has promised to land full support for the legislation of this new system.

    Addressing the ceremony CEO CDC highlighted main points of Land Repository System. Zaigham Rizvi, Chairman Prime Minister’s Task Force for Housing also spoke on this occasion. Vice Chairman ABAD Abdul Kareem Adhia thanked all guests.

  • Govt preparing comprehensive policy to develop Karachi: Ali Zaidi

    Govt preparing comprehensive policy to develop Karachi: Ali Zaidi

    KARACHI: Federal Minister for Maritime Affairs Syed Ali Hyder Zaidi has said that the federal government is preparing a comprehensive policy for the development of Karachi and the first phase of cleaning drains has been completed and garbage will be lifted in the second phase of Clean Karachi Movement spearheaded by him.

    The federal minister was addressing a meeting with members of Association of Builders and Developers of Pakistan (ABAD) here on Friday at ABAD House. Chairman ABAD Muhammad Hassan Bakshi, Senior Vice Chairman Anwar Dawood, Vice Chairman Abdul Kareem Adhia, Chairman Southern Region Ibrahim Habib, PTI MPAs Jawed Siddiqui and Bilal Gaffar were also present on this occasion.

    Ali Zaidi said that due to his efforts with the help of Frontier Works Organization (FWO) Karachi witnessed that rain water during second and third spell water was receding fast as almost all drains were cleaned. He lamented that civic sense among the public has been faded as a result of abrogation of Civic Studies from the syllabus of schools.

    He said that Rs. 100 million was donated by various entities and individuals for Clean Karachi Movement. This money, he continued, was directly deposited into the bank account of FWO opened for the Clean Karachi purpose.

    Earlier, addressing the gathering Chairman ABAD Muhammad Hassan Bakshi demanded of the federal minister to request government for declaring Karachi as the second Capital of Pakistan as this city is generating more than 70 percent revenue. He also requested Prime Minister Imran Khan to held meeting the Federal Cabinet in Karachi and also stay in Karachi for atleast fifteen days to show ownership of the city.

    Hassan Bakshi demanded of the federal government to pave way to lift ban on construction of high rise buildings in Karachi, although the ban imposed by the Supreme Court of Pakistan in lifted but still builders are not getting approvals for the same.

    Senior Vice Chairman ABAD Anwar Dawood said that it is fact that Karachi needs cleanliness but the government should also take stern action to clean garbage of corruption for the betterment of the economy and development of the country. Chairman Southern Region Ibrahim Habib thanked federal minister and PTI MPAs and media for attending the meeting.

  • ABAD welcomes new chairman FBR

    ABAD welcomes new chairman FBR

    KARACHI: Association of Builders and Developers of Pakistan (ABAD), welcoming the appointment of a leading Chartered Accountant and tax expert Shabbar Zaidi as the Chairman of Federal Board of Revenue (FBR), has hoped that Shabbar Zaidi will bring in new strategy to solve problems of business community of the country as well as creating new venues for tax collection rather than taxing already taxed people.

    Chairman ABAD Muhammad Hassan Bakshi, Senior Vice Chairman Anwar Dawood, Vice Chairman Abdul Kareem Adhia and Chairman Southern Region Ibrahim Habib, in a statement, said that the PTI-led federal government has taken right decision by appointing a technocrat from private sector as Chairman FBR. This decision will have good impact on revenue generation and solution of tax-related problem as Shabbar Zaidi is well-known in business circles as well as in bureaucracy of FBR as a tax expert and provincial and federal governments used to take advice from him, they said. Recently, in an interview, Shabbar Zaidi had said that he will try his best to increase tax to GDP ratio from 13 percent to 26 percent.

    ABAD office-bearers said that widening tax net is necessary for more tax collection. They demanded of the federal government to announce and implement much-talked Tax Amnesty Scheme as soon as possible for boosting revenue collection.

  • FPCCI to move review petition in demolition of illegal constructions

    FPCCI to move review petition in demolition of illegal constructions

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has announced its decision to file a review petition before the Supreme Court of Pakistan (SCP) concerning the demolition of illegal and unauthorized constructions in Karachi.

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