Islamabad Pakistan:Federal Tax Ombudsman (FTO) Dr. Asif Mahmood Jah has assured the Association of Builders and Developers (ABAD) of prioritized resolution of their tax-related concerns. During a visit to ABAD House on Tuesday, Dr. Jah reaffirmed the FTO office’s commitment to eradicating irregularities in the tax system and fostering a fair environment for taxpayers, particularly those in the construction sector.
Dr. Jah highlighted the critical role of the construction industry in Pakistan’s economy, recognizing the sector’s contribution to national development and revenue generation. He noted that ABAD members support millions of jobs and inject trillions of rupees into the national treasury through taxes. To strengthen collaboration, he announced the appointment of an ABAD-nominated advisor to the FTO, ensuring direct representation for the sector.
Encouraging ABAD members to formally report their grievances, Dr. Jah promised swift action and transparent resolution processes. He cited the FTO’s recent performance, stating that 8,000 of 8,963 complaints filed in 2023 were successfully resolved. “Taxpayers are the backbone of the economy, and we are committed to addressing their issues with dignity and respect,” he said.
ABAD Chairman Hassan Bakhshi raised concerns over the Federal Board of Revenue’s (FBR) enforcement practices, particularly frequent summons and increased monitoring of builders and developers. He argued that such measures disrupt business operations and undermine the construction sector’s pivotal role in the economy. Referring to a State Bank of Pakistan report, Bakhshi emphasized that the construction industry drives employment and absorbs a significant portion of overseas remittances, with $30 billion received annually, 54% of which flows into real estate and construction.
Bakhshi also criticized the growing tax burden on property transactions, noting that the FBR collects capital gains and income taxes during property lease and registration. The introduction of federal excise duties on these transactions, he warned, risks discouraging foreign investors, with adverse effects on economic growth.
Responding to these concerns, Dr. Jah urged ABAD members to submit detailed written complaints, assuring a thorough review and resolution. He reiterated the FTO’s dedication to supporting the construction sector and fostering an equitable tax regime that promotes investment and growth.
The meeting concluded with optimism for improved collaboration between the FTO and the construction industry, aiming to address systemic challenges and boost confidence among stakeholders.
