In a recent special program The Great Debate Chairman of the Association of Builders and Developers of Pakistan ABAD Asim Sum Sum strongly opposed the idea of taxing first-time homebuyers. He said that such a move would be unfair to citizens who are taking their initial steps towards homeownership.
Sum Sum pointed out that around the world governments support individuals purchasing their first home recognizing the challenges they face. He questioned the fairness of imposing taxes on economically disadvantaged individuals who are already struggling to make five-year installment payments for their flats.
During the discussion Abad Sum Sum also shared his views on economic reforms. He suggested that the gap between the Federal Board of Revenue FBR value and the market value of properties should be gradually reduced to create a more transparent and equitable system.
Adding to the debate Khalid Hussain President of the Farmers Union warned that imposing taxes on agriculture would be detrimental to the sector to the point where it might be considered a death knell for Pakistan’s agriculture.
Former FBR Chairman Shabbar Zaidi criticized the government’s approach to tax collection arguing that the authorities are not genuinely committed to collecting taxes. Instead they often resort to negotiating loans from the International Monetary Fund (IMF) rather than establishing a robust tax collection system. Zaidi also highlighted legal issues stating that fixed taxes cannot be levied on shops without proper registration under the Shop Act.
Economist Ammar Habib emphasized the importance of digitalizing transactions to formalize the economy. He noted that countries with lower literacy rates than Pakistan have successfully digitalized their economies. He cited the example of Pune India where property tax collection surpasses that of the entire Punjab province in Pakistan.
Atiq Mir President of the Karachi Traders Union voiced concerns about the imposition of fixed taxes. He insisted that the business community should be consulted before any such measures are implemented. Mir argued that even if taxes are collected they often end up being used to pay off interest on loans or for the luxuries of those in power rather than for the betterment of the country.
The debate highlighted significant issues and diverse opinions on taxation economic reforms and the need for a more inclusive approach to policy-making. The views expressed underscored the challenges faced by different sectors in Pakistan and the importance of careful consideration and consultation in implementing economic policies
