FGEHA seeks fresh five-year tax break as board clears new land rules

ISLAMABAD: The Federal Government Employees Housing Authority has decided to ask the federal government for another five years of income tax exemption, seeking relief from July 1, 2024 to June 30, 2029 after an earlier exemption period ended last year.

An FGEHA official said the authority’s executive board approved the proposal and directed that the request be moved through the Ministry of Housing and Works, along with the incorporation of required provisions in relevant tax laws, including the Income Tax Ordinance, 2001.

The official said the authority was a “statutory public sector welfare organisation” operating on a no-profit, no-loss basis to provide affordable housing to serving and retired government employees. He said its development work was financed through instalment receipts, service charges and transfer fees, adding that these funds were used for operational and development needs rather than commercial gain.

The federal government had earlier granted the authority tax exemption from 2020 until June 30, 2024.

Board also approves land acquisition framework

In the same meeting, the board approved the FGEHA Land Acquisition (Land Sharing Basis) Regulations 2026, introducing a project-based model for determining land-sharing ratios.

Officials said board members were briefed on the difference between the proposed FGEHA framework and the Capital Development Authority’s regulations. Under the new approach, the land-sharing ratio will not follow a standardised formula and instead will be set on a case-by-case basis, subject to board approval after considering project requirements, financial viability and development considerations.

The board, however, held back a decision on draft Disposal of Commercial Property Regulations, 2026, saying the matter required further examination and should be brought separately before an upcoming meeting.

Road naming proposal forwarded for cabinet approval

The board also approved a proposal to name Road No 804 in sector G-14 as Chan Shah Kazmi Road in honour of Syed Chan Shah Kazmi, described by officials as a revered late spiritual figure of the area.

Officials said a substantial portion of land in G-14 had been acquired from members of his family and community. They said the authority had been directed to process the case through the Ministry of Housing and Works for submission to the federal cabinet for a final decision.

The developments come as several FGEHA projects continue to face prolonged delays. The Senate Standing Committee on Housing and Works was recently told that the Ministry of Housing had barred the authority from launching new schemes until ongoing projects were completed, although development in sectors F-14 and F-15 is continuing.