A Good News For the Of Real Estate Agencies and Builders
PM Pakistan Has Announced Incentives for Construction Sector
Prime Minister of Pakistan Imran Khan has given real times good news to the construction industry by announcing an Incentive Package on Friday in Islamabad.
This decision has been taken by the government by considering the current status of the country due to COVID-19. This step will put a positive impact on the economic condition and will also increase employment opportunities. Mr. PM added in his statement that a great number of people are attached to the two basic employing sectors i.e, Agriculture and Construction. He also announced that an additional measure is going to be taken by setting up a Construction Industry Development Board.
The Construction Industry firms are expected to open again by the 14th April to file the employment.
The Main Points of Incentive Package included:
- No question will be asked about the source of income from the investors in the construction sector this year
- There would be a Fix Tax Regime for the construction sector
- If invested under Naya Pakistan Housing 90 percent Fixed Tax will be waived off
- All Withholding Taxes on construction will be waived off apart from cement and steel
- There will be a fixed tax rate for the construction sector, and each constructor will be charged tax per square foot or square yard.
- Federal Government will coordinate with the Provinces regarding sales tax reduction, 2 percent of sales tax will be reduced by Punjab and KPK governments
- In case if a Family sells its house no Capital Gain Tax will be charged
- For the encouragement of the construction activities, a subsidy of Rs 30 Billion will be given to Naya Pakistan Housing Project
- In accordance with / proportionate to the increase in the valuation table, a rate of tax will be reduced
- A reduction from 4 years to 3 years will be offered in the CGT holding period of construction properties
- The period of CGT holding for the real estate plots will remain for 8 years but a significant reduction might be possible in the tax rate from the fourth year onwards on a sliding scale
- The builders and developers whiling announcing their net wealth will be entitled to imputing a revenue equal to 10 times of paid tax under this program
- A Construction Industry Development Board will be established for the development and support of the Construction Industry
The FBR will officially issue the notification including further details related to this subject.