ISLAMABAD: A task force formed by Prime Minister Shehbaz Sharif on Monday urged the government to revise taxes levied on the real estate and housing sectors to spur growth in the sector and make it inclusive for the lowand middle-income groups.

The task force headed by Federal Minister for Housing and Works Riaz Hussain Pirzada met at the housing ministry and discussed the taxation issue in the real estate and the housing sectors.

The meeting proposed a revision in the existing taxes, including 236 C, 236 K, the federal excise duty, and stamp duty to uplift the sector.

It proposed low taxes to ensure affordability and inclusivity for lowand middle-income groups.

Federal Finance Minister Muhammad Aurangzeb, Minister of State for Finance and Revenue Ali Pervaiz Malik, Federal Board of Revenue Chairman Rashid Mahmood Langrial, and other members attended the meeting.

A detailed presentation was given on the current challenges faced by the housing sector.

These challenges were listed as the gap in the demand and supply of housing units with a deficiency of 12 million houses, urban sprawl, planning constraints, government regulations, and the unsatisfactory involvement of the private sector.

Other issues included taxes on sales and purchases, excessive property valuations, and cumbersome tax procedures.

It was also discussed that the problems in access to finance were due to low mortgage penetration by the banks and relatively high interest rates on housing loans.

According to the housing ministry, it was agreed that policy and banking reforms for introducing low-cost housing subsidies with fixed terms and low policy rates were direly needed.

The meeting urged that the policy rate should preferably be in a single digit to support low-income strata to ensure smooth access to housing finance.

Moreover, innovative mortgage solutions like incremental housing microfinancing and developing digital financing platforms were also endorsed. The task force constituted by the prime minister had representation from the relevant government departments and the private sector.

Initially, four working groups on key areas, such as taxation issues, access to finance, urban planning and the Real Estate Regulatory Authority (RERA), and the growth framework for housing were composed, with relevant group members and experts expected to come up with concrete recommendations.