Newly elected Chairman of the Association of Builders and Developers (ABAD), Muhammad Hasan Bakhshi, has announced that ABAD has taken legal action against the Excise Duty (ED) imposed on builders and developers for property purchases. He described the excise duty as completely unjust and inappropriate.
Muhammad Hasan Bakhshi clarified that the Federal Excise Tax (FET) is typically imposed on luxury items or industrial products. Applying this tax to basic needs like houses or apartments is entirely unreasonable, he said.
The newly elected chairman ABAD emphasized that they will now present their case in court and are hopeful of a favorable decision.
Bakhshi also mentioned that they had repeatedly appealed to the government to abolish this excise duty, but no action has been taken so far.
The chairman ABAD expressed concern over the continuous decline of the construction industry, attributing it to the imposition of such taxes. He warned that people are transferring their investments to Dubai due to these issues. He stressed the need to stop this outflow of capital and encourage people to reinvest in Pakistan.
