PEW hails govt move to regulate realty market
ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday appreciated the efforts of Finance Minister Ishaq Dar to regulate realty market which would help government raise billions of rupees and increase the size of documented economy.
According to PEW statement, the decision is being resisted by a majority of business community which amounts to help tax cheats as it will convert a good part of the informal economy to the formal one.
President PEW Dr Murtaza Mughal said Pakistan’s real estate sector has become a safe heaven for corrupt bureaucrats, politicians, criminals, terror financing and crook businessmen. Formal economy is shrinking as compared to informal one and now it was bigger than the former, he added.
Dr Mughal said that the decision of the finance minister pertaining to real estate sector would help increase tax-to-GDP ratio which is one of the lowest in the world.
Dr Mughal called for making an end to culture of amnesty schemes as each scheme was declared to be the best, but the count kept on growing.
A study estimated that the underground economy was 54.6 percent to 62.8 percent of the GDP and expanding at the rate of nine percent a year. According to a report, informal businesses enjoy cost advantage by avoiding taxes and regulatory obligations, which allows them to remain competitive despite low productivity.
Source : Online