Islamabad, May 8,2026: President of the Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mehmood, has welcomed the landmark court verdict declaring Section 7-E of the Income Tax Ordinance 2001 unconstitutional, describing it as a major relief for the country’s real estate sector and a positive step toward restoring investor confidence.
Speaking to visiting members of the real estate business community on Friday, Sardar Tahir Mehmood said Section 7-E had empowered the Federal Board of Revenue (FBR) to impose tax on “deemed income” from immovable properties even when owners were not generating actual income from those assets.
He termed the court’s ruling a significant development for the economy, particularly for the real estate and construction sectors, which he said had suffered heavily due to the controversial taxation measure.
“The real estate sector is one of the key engines of economic activity and supports dozens of allied industries, including steel, cement, tiles, paint, transport and labour,” he said.
According to the ICCI president, the imposition of tax on assumed income had created uncertainty among investors and discouraged genuine investment in the property market.
Sardar Tahir Mehmood expressed hope that the abolition of Section 7-E would help revive investment activities in the real estate sector, leading to greater business opportunities, employment generation and stronger economic growth.
He also urged the government to formulate business-friendly taxation policies in consultation with stakeholders to ensure sustainable economic development and improve the overall investment climate in the country.
On the occasion, Tahir Ayub said the business community had consistently opposed Section 7-E, arguing that it was unjustified and harmful to economic activity.
He maintained that the court decision would help rebuild investor confidence and encourage documented investment in the property sector.
Meanwhile, Muhammad Irfan Chaudhry emphasized that fair and rational taxation policies were essential for promoting investment and strengthening the national economy.
He said the business community expected the government to introduce reforms aimed at facilitating taxpayers and investors instead of creating unnecessary hurdles for businesses.
