Summary PM Imran Khan also announced Rs30 billion subsidy for the Naya Pakistan Hosuing Scheme.
ISLAMABAD (Dunya News) – Prime Minister Imran Khan on Friday said that the source of income of those investing in the construction sectors will not be asked.
Announcing the package for the construction industry in Islamabad on Friday, he said that the Pakistan Tehreek-e-Insaf (PTI) government is giving status of industry to construction sector.
He said that those investing in the construction sector during this fiscal year 2020-21 would not be asked any questions about the source of their income, adding that the government had also decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land would be levied on the basis of per square yard and per foot.
The prime minister however, added that those investing in the prime minister’s housing programme would be given 90 percent tax rebate and they would be required to pay just 10% of the total calculated tax amount on their projects.
Imran Khan said that it has also been decided to waive-off withholding in cement and steel sectors. Besides, he said, that in coordination with the provincial governments of Punjab, Khyber Pakhtoonkhwa and Sindh, it has also been decided to bring the sales tax in construction sector to 2% through consolidation of all taxes.
"Capital Gain Tax on the sale of house was also being done away with, the premier further and also announced Rs30 billion subsidy for Naya Pakistan Housing Programme, adding, further subsidy would be given on its progress.
PM Khan went on to say that the government has also decided to give construction sector the status of industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the construction industry in the country, he added.
He further said all the decisions regarding the COVID-19 were being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.
"Since the Rs. 1200 billion’s stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak, the government had decided to open the construction sector," he said.
"With the agriculture sector, which was already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, was very much needed, the premier added.
Main Incentives
1. Investors in Construction sector will not asked to disclose source of income.
2. Fixed taxation system for construction (taxed per square foot).
3. For Naya Pakistan Housing Scheme investors will only pay 10% as tax.
4. Withholding tax on materials used for construction except Cement and Steel will be exempted.
5. No capital gain tax.
6. Subsidy worth Rs30 billion announced for New Pakistan Housing Scheme.
7. Construction Industry Development Board to be formed which will give construction sector an industry status.
