Dha Lahore Property Real Estate Latest News Updates non-filers, and real estate Pakistan Real Estate,Taxation

Clearing the confusion: Mini-budget, non-filers, and real estate

Pakistan Real Estate,Taxation

Budget 2018-19 had its pros and cons and a significant impact on the real estate sector of Pakistan. One of its most discussed highlights of the budget was that the previous government, in its efforts to regularise real estate and encourage people to file taxes, had restricted the non-filers from buying property valuing greater than PKR 5 million.

The premise was that people who are rich enough to buy property worth more than PKR 5 million should also be tax filers and taxpayers. The hope was that it would help increase the revenue for the government and, at the same time, increase the contribution of the huge real estate sector to the national exchequer.

On the other hand, the real estate stakeholders contended that this would add confusion to the real estate sector of Pakistan, slowing its growth when it has already been slow under the new taxation regime. What no one figured in to the equation was the confusion that it would cause among the overseas Pakistanis, even though they actually didn’t have to pay any new taxes under this – due to double tax agreements.

Overseas Pakistanis are special in that they are critically essential to the health of both Pakistan’s foreign exchange reserves and its real estate. Both of those are essentially related as well – a large amount of remittances to Pakistan by overseas Pakistan are, in turn, invested in the real estate. Remittances from overseas Pakistanis form one of the four sources of remittances to Pakistan and, in year 2017-18, remittances formed 40% of the inflows to the country. Incredibly, it is also the source of forex that has seen the highest growth in the last two decades – it grew by 19-20 times, as compared to Foreign Direct Investment (FDI) that increased by eight times.

So if confusion and hesitation existed among overseas Pakistanis, it was natural that remittances, and in turn, real estate and foreign exchange .

Buy/Sell/Rent Property/House, in Dha Lahore, Call Faraz 0321-4000646 (For Property Rates Check http://DhaRealEstate.pk

Chohan Estate (Dha Authorized Company) Buy/Sell/Rent Property/House, in Dha Lahore, Call Faraz 0321-4000646 For Property Rates Check http://DhaRealEstate.pk