The Association of Builders and Developers (ABAD), led by newly elected Chairman Muhammad Hasan Bakhshi, has filed a legal challenge against the excise duty imposed on builders and developers for property purchases. Bakhshi described the duty as “unjust and inappropriate,” criticizing its application on a basic need like housing. Bakhshi argued that the Federal Excise Tax (FET) is typically reserved for luxury goods and industrial products, making its imposition on homes and apartments unreasonable.
“Housing is not a luxury, it’s a necessity, and taxing it like an industrial product is entirely out of line,” he said. ABAD had made several appeals to the government to revoke the duty, but their concerns have been left unaddressed. As a result, the association has decided to take its fight to the courts in the hope of overturning the decision.
The chairman also highlighted the detrimental impact such taxes are having on Pakistan’s construction industry, which he said is experiencing a steady decline. He warned that many investors are shifting their capital to Dubai due to the unfriendly business environment in Pakistan. Bakhshi called on the government to take steps to halt the outflow of investment and encourage reinvestment in the local economy. ABAD remains hopeful that the court’s decision will be favorable, potentially revitalizing the struggling construction sector and preventing further economic losses.
