Realtors oppose capital gains tax
PESHAWAR, Feb 19: The local property dealers have opposed imposition of capital gains tax (CGT) and demanded of the government to withdraw it immediately.
Addressing a press conference here on Tuesday, Property Dealers Association organising committee president Mazhar Wakeel Durrani said that federal government imposed capital value tax on property dealers and builders.
He claimed that imposition of the tax was illegal. He said that after passage of 18th amendment it was prerogative of the provincial government to collect of capital taxes.
Mr Durrani said that provincial government was already collecting capital value tax from property dealers and landowners since long but despite that capital gains tax was imposed on them.
He said that Federal Bureau of Revenue (FBR) introduced a new tax in June, 2012, that was formally implemented about two weeks ago by the provincial government. “It is totally unjust and illegal tax, imposed by federal government on the province,” he said and demanded withdrawal of the tax. Flanked by members of organising committee of the association including Hayat Wali Afridi, Sheikh Amin Khan, Haji Rehman, Sher Alam and Shahjehan, Mr Durrani said that business activities were next to nil in Peshawar owing to lawlessness. People were leaving the region for safer places, he added.
He said that Peshawar Development Authority was not allowing transfer of property owing to non-payment of CGT. The entire property business had come to a halt because of it, he added.
“We are ready to pay more taxes, if the government provides us security and favourable environment for businesses,” Mr Durrani said.
He said that it was difficult to pay more taxes in the present uncertain situation in the province. The federal government should withdraw CGT keeping in view ground realities, he said.
Mr Durrani said that they would move Peshawar High Court against the tax if it was not withdrawn immediately.