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SLAMABAD: The Prime Minister's Task Force on Housing Sector met with Shehbaz Sharif to discuss a tax incentive package for the real estate sector. However, key issues remain undecided, including giving subsidies and amnesty to boost construction activities.

    The FBR Chairman opposed a proposal to give Rs50 million worth of amnesty to first-time home buyers due to IMF restrictions. Arif Habib suggested exempting first-time buyers from disclosing income up to Rs50 million, but the FBR Chairman disagreed, citing tax amnesty concerns.

    The task force agreed on lowering property transaction taxes and abolishing federal excise duty, which is already disputed by taxpayers and being challenged in courts. The Prime Minister tasked Minister Ahad Khan Cheema with fine-tuning the package and consulting with the IMF.

    Concerns were raised that the incentive package could lead to speculative activities and money laundering. Arif Habib proposed allowing first-time buyers to purchase homes without disclosing income up to Rs50 million, but this was met with opposition from the FBR Chairman.

    The Prime Minister instructed officials to work with Arif Habib to find a solution. The business community plans to meet with the IMF next month to discuss the amnesty scheme. FBR Chairman Rashid Langrial stated that there is a consensus on providing relief to the real estate sector, but key issues remain unresolved.

    The housing sector task force was formed after the real estate sector slowed down due to heavy taxes and economic growth concerns. The Prime Minister wants the package to promote construction and economic activities in the country.