The Federal Government Employees Housing Authority (FGEHA) has decided to seek a five-year income tax exemption from the federal government, stating that it functions as a welfare organisation dedicated to providing affordable housing for serving and retired government employees on a no-profit, no-loss basis.
According to officials, the FGEHA Executive Board has approved a proposal requesting that its income tax exemption be extended from July 1, 2024, to June 30, 2029. The request will be submitted to the federal government through the Ministry of Housing and Works. The authority previously enjoyed tax-exempt status from 2020 until June 30, 2024.
Officials explained that the authority does not operate as a commercial enterprise. Instead, it funds its activities through instalment payments, service charges, transfer fees, and other approved receipts. These funds are used solely for housing development, project execution, and operational expenses rather than generating profits. To support the proposed exemption, FGEHA also plans to seek the necessary amendments to the Income Tax Ordinance, 2001.
During the same meeting, the executive board approved the FGEHA Land Acquisition (Land Sharing Basis) Regulations 2026. The new regulations introduce a project-specific model that provides greater flexibility in determining land-sharing arrangements instead of following a single standard formula for every housing project.
The board also discussed a proposal concerning the disposal of commercial properties. However, the matter was postponed for further review before a final decision is made.
In another decision, the board approved a proposal to rename Road No. 804 in Sector G-14 as Chan Shah Kazmi Road in honour of the late spiritual figure’s historical and cultural connection with the area. The recommendation will now be forwarded to the federal cabinet through the Ministry of Housing and Works for final approval.
The latest developments come as several FGEHA housing projects continue to experience delays. The Senate Standing Committee on Housing and Works was recently informed that the authority has been restricted from launching new housing schemes until ongoing projects are completed. Despite this restriction, development work in Sectors F-14 and F-15 is continuing as planned.
The proposed tax exemption is expected to help FGEHA strengthen its financial position and continue delivering affordable housing projects for government employees across Pakistan.
Also Read: FGEHA Gives G-13 & G-14 Residents 24 Hours to Remove Encroachments
