RCCI demands withdrawal of property tax on rental income.

RAWALPINDI -- The Rawalpindi Chamber of Commerce and Industry (RCCI) on Sunday demanded that the government should withdraw the property tax on rental income proposed in the federal budget 2022-23.

It said the government has proposed that those who own more than one immovable property worth over Rs25 million shall be deemed to have received a rent equal to 5pc of the fair market value of the property and shall pay a tax at the rate of 1pc of its market value.

It said the proposed tax will affect the construction sector to which over 40 allied industries are connected.

RCCI President Nadeem Rauf and group leader and former president Sohail Altaf said in a joint statement that more incentives should be given to the construction industry to increase business activity.

'Overseas Pakistanis invest heavily in the construction sector. The proposed measure would be tantamount to taxing those who send remittances to the country. The property tax should be reviewed to attract more foreign investment and restore investor confidence in the country.'

The proposed tax on rental income will increase the dispute between the property owner and the tenant. The tax officer has been...