PESHAWAR, September 26: The business of real estate has been adversely affected because of hike in property tax in the provincial capital Peshawar.
President of Peshawar Property Dealers Association, Mr Mazhar Wakeel, told TNN that government employees, who had got plots in Regi Model Town, were selling their lands on low prices due to lack of facilities in the area while the government has raised the tax by 1% on land.
In addition, 2% withholding tax has also been imposed on people who wish to buy land in Peshawar. Due to increasing tax, investors are moving to Islamabad, Lahore, Karachi and Gawadar (Balochistan).
“Tax on purchase and sales of lands has been increased thrice during the last several years. Ultimately rents of houses have also increased. If such a situation persists, the property dealers would have to wind up their businesses,” Mr Mazhar Wakeel said.