Construction Sector upgraded to industry with Historic stimulus Package
Prime Minister Imran Khan announced a historic package full of incentives for construction industry of Pakistan. With lieu of this announcement, businessmen & others related to Real Estate & construction field got deferred from several type of taxes. PM also upgraded construction from sector to industry. He said that this particular industry will keep on working during the unconditional lock-down because of Covid-19.
PM said these necessary incentives given are to accelerate the economic activities in the country. As a major lag was witnessed in the overall economy performance due to Corona virus pandemic. In addition, it will open new job opportunities for daily wagers & many other allied industries. As this strata of population has been majorly affected due to the lock-down.
The salient incentives along with relaxation announced for the construction industry & related includes:
- Unbinding to reveal source of income while investing in construction industry.
- Tax rate will remain fixed & calculated as per Square foot or Square Yard.
- Only 10% fixed tax applicable to those investing in Naya Pakistan Housing Scheme
- Withholding tax waived from all sectors related to construction industry except steel & cement.
- Sales Tax reduced in coordination with provinces
- No capital gain tax for domestic use selling houses
- PKR 30 Billion subsidy for Naya Pakistan Housing Scheme
- To set up Construction Industry Development Board
It is said that construction industry is the second largest sector in the country. It specifically creates hundred of employment opportunity among the people. This particular decision was taken to maintain balance between a lock-down & keep the wheel of the economy swinging.
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Furthermore, it is also announced that construction sector will reopen on April 14, 2020. With effect to 18th Amendment provinces have freedom to make changes in aforementioned incentives as per their needs. As Federal Government cannot interfere. We can only advice provincial units in this regard.