IMF rejected the proposed tax scheme for builders and developers.
Chairman FBR MR. Shabbar Zaidi announced it two months ago that they are drafting a special scheme for the industry to help it under the given economic conditions and to recirculate the money, stuck in the industry.
The federal government drafted the presidential ordinance. But the IMF officials rejected the idea when the government shared it.
IMF objects that it will compromise the tax reforms and will only benefit the rich and wealthy class.
The problem is we already have issues within the tax system. Which can only be solved if the policies are consistent for 10 to 15 years. For the time being, we have no other choice but to deal with the existing system.
Secondly, it’s incorrect to say that this scheme will only benefit the rich because 60 to 80 industries are connected with the construction market.
Once it moves, it will help many small businesses as well as middle to the lower class.
The IMF said to deal with it under the regular tax system. It is impossible because there are tons of Benami properties, and the government doesn’t have enough workforce to confiscate these properties.
So how can we expect from the government to handle the construction sector issues simultaneously?
I urge PM khan to show personal interest in the matter and ask the IMF to provide a better alternative. Otherwise, just let us proceed with the said scheme to help the builders and developers.
It will move the slow economy by increasing the GDP growth and also help control the surging inflation with the increased cash flow in the market.