Govt Considering Tax Relief Package to Revive Real Estate Sector

The federal government is considering cutting tax rates on the real sector to promote growth in the industry that has been stagnant for the past few years. According to sources within the Federal Board of Revenue (FBR), the government aims to take the International Monetary Fund (IMF) into confidence before finalizing a growth package for the sector in the form of lower taxation.   According to sources, the government has met the tax-to-GDP target and there is no pressure from the IMF to introduce a mini budget despite the fact that FBR is set to miss the tax collection target set for the half-year ending this month. According to sources, the current tax rate on the real estate sector is around 11-12 percent, which has significantly reduced property transactions. The government aims to cut tax rates to revive the sector as the sector and allied industries provide employment to thousands of people.