Ordinance Approved by PTI Government for Real Estate Industry Regulation and Development
Ever since the corona pandemic has started it has caused a vast number of deaths across the globe also collapsing each country regardless of how powerful or developed it may be. Super-power countries such as America, developed countries such as Italy, France, and United Kingdom are affected by this virus more than many developing countries including Pakistan and India.
Perhaps, these developed countries and superpowers could really bear the price but Pakistan couldn’t really, because as an underdeveloped country we already had loans to pay to IMF and other countries, also, the economy of Pakistan was just getting better before the pandemic. But now as we see people are starving to death and they fear more from hunger but coronavirus.
It was in consideration of the government and Prime Minister, Imran Khan that lockdown was not as easy as it seems because the highly affected will be the daily wagers who had been surviving on “hand-to-mouth” for years which is why as a relief in these economic crises an ordinance has been approved regulating the real estate industry development with safety guidelines of people.
Below are the points included in the ordinance:
- Investors who will be investing in the construction business won’t be asked to give the money trail.
- Withholding tax is only applicable to construction material (cement and steel).
- Builders and Developers are allowed to take a profit ten times more amount of the tax-paid.
- Low-cost housing project such as Naya Pakistan Housing Program tax is reduced by 90%.
Note: There is a lot more to the ordinance which you can check out on the official government website.
A lot of people think of this ordinance is to benefit the rich people in the government or who support the government will help them to convert their black money into white. But actually, this ordinance was approved to stop the market crash. Following are the reasons behind the ordinance approval:
- No more dead investments in real estate: People might be thinking of this scheme as an opportunity to convert black money into white but it is not as it looks. There are other aspects to this scheme that prevents illegal activities. The ordinance clearly states that people involved in the trading of plots won’t be benefited unless done construction. Secondly, they will have to be filers to avail this scheme. FBR will give time to people to become filers as per their transition period.
- Selling pressure of the sellers: Most people are more affected by no money and food than coronavirus. It’s been heard by people saying, “Corona will leave more people bankrupt than dead” which means after this virus is cured won’t be the end of troubles but it will be a new beginning of an era with collapsed economies and unemployment.
- Local Pakistani have no longer the purchasing power: People are already consuming their savings at the time of lockdown. Most of the companies were unable to give salaries to people and most of the people who were living a tough financial life has suffered a lot. There remains no room for investment to be made by local citizens.
We here at Five Star Marketing pray that all our investors and citizen of Pakistan are safe and request them to stay at home. Hereby, all the operations are operational on phone calls. In case of any guidance, you can always get in touch with us.