Karachi. 1.8.2016: “In our country where even the very poor pay withholding income tax on mobile phone cards, the elite have been given yet one more privilege through massive reduction in Capital Gains Tax on selling of property”, PPP’s Senator Taj Haider said in a press statement.
“Millions and millions earned by the elite without doing any work are now practically exempt from any kind of tax since the holding limit of 3 years for property is nothing more than a smoke screen. There would be very few property owners who would sell their property within 3 years of purchasing it.”
Senator Haider said that money earned through speculative buying or selling of property is nothing but “Rent Income”. It does not contribute to raising our national production. It does not create any new jobs. Speculation is gambling without the fear of loss. It merely adds to the value of a commodity. It does not add to the number or quantity of the commodity. Owning a house to live in has now become impossible even for the upper middle class. House rents have shot up.
What is even worse is the fact that speculative investments in property take financial resources away from medium and small productive enterprises that are badly in need of investments and that contribute enormously to national production and employment, added Senator Haider.
“Government of the Elite, by the Elite, for the Elite” has yet again cheated the common man in the so called fresh ‘valuation of property at its market value’ stunt. Market value of a property cannot be fixed by vested interests or the so called stake holders, he said.
Market value of a property is the amount on which a transaction for its sale takes place, he added.
He questioned as why can’t we make public the declared value of a transaction at the time of the registration of its sale deed? Why can’t we make a law that any one paying more than the value of the property declared in its sale deed will have the right to buy the property after paying the required registration fee at its offered value? There is no other way of determining the correct market value of a property.
Senator Haider said that the State has to protect the rights of the common man. It should not defraud them. It cannot interminably keep shifting money belonging to the common man to the pockets of the lazy Elite. It should tax accumulation of wealth. It should punish tax evasion and block the transfer of national wealth abroad in shape of offshore companies. It should give relief to those who work night and day and whose children remain hungry, illiterate and sick.
While condemning the latest conspiracy against the people of Pakistan, he demanded that Capital Gains should be included in the tax returns of an individual and should be taxed at par with the income earned by doing hard work.