Protests in Pakistan against heavy taxes on real-estate sector

Pakistan’s local media outlet ARY News reported that the Defence Clifton Real Estate Agents Association protested against the imposition of heavy taxes on property and rejected the Budget 2022-23.

The association said, “the federal government has doubled the taxes on property in this year budget.” It added that there are facing huge challenges because of the imposition of heavy taxes as they are unable to conduct their businesses.

Furthermore, while warning that thousands of people associated with the real estate business will lose employment, Zubair Baig criticized the rulers and said that the government was collecting cruel taxes, as per the media portal.

The association said that real estate is a dynamic sector and has the ability to attract huge foreign investment but because of heavy taxation, it is facing catastrophe-like circumstances and struggling for survival.

In spite of multiple actions taken by Pakistan, its current account deficit has surged to USD 17.4 billion or 4.6 pc the size of the economy during the last fiscal year on the rising trade deficit.

This comes amid a surge in international commodity and oil prices, implying that Pakistan will have to spend more on its energy and other imports, reported Dawn. The higher prices and 33 pc spike in imports from the petroleum group more than doubled the country’s oil import bill to USD 2.9billion in June from USD 1.4 billion in May, the central bank said, and pushed up the month-on-month trade deficit by 27 pc, despite a drop in non-oil imports.

With the IMF expected to release its funds soon, thus unlocking additional financing from other multilateral and bilateral creditors, Pakistan’s external sector may likely perk up in the short term, reported Dawn. (theprint.in)