Builders claim budget will not reduce house prices

KARACHI: The Annual Budget 2015-16 has been termed unfriendly by the common man, traders, opposition politicians and now builders as well. Construction industry experts claimed on Saturday, that house prices will not decrease on the back of recently announced budget.

Builders told Geo News, if the government allows import of cheaper steel and cement then prices can see a 20 percent reduction.

While prospective buyers were under the impression that house prices will come down following the budgetary measures, sources have confirmed that previously no tax was applicable on brick and building material. They added that the five percent reduction in turnover tax and income tax will not have any impact on house prices but added that an increase in construction projects will have a positive impact on employment in the sector.

Builders claim that currently the price of steel in Pakistan is approximately $350 more expensive per ton while cement costs $9 more per bag. If the import of steel is allowed and tax on imported cement is reduced then house prices can witness a 20 percent decline.