Imran Khan announced incentive package for the construction industry keeping in view the outbreak of corona virus and how it is affecting the people. He stated that we have a challenge of poverty along with corona virus, as most of the people are laborers and daily wagers. Hence to provide employment to them he has introduced this package.
Moreover, it is a great opportunity for all the businessman and investors
The main clauses are:
• Complete amnesty and no question will be asked about source of investment in the construction sector this year.
• Fix Tax Regime for the construction sector.
• 90 percent Fixed Tax will be waived off if invested in Naya Pakistan Housing Scheme.
• Federal Government will discuss with Provinces regarding sales tax reduction. Punjab and KPK have already reduced sales tax to 2 percent.
• No Capital Gain Tax will be charged on sale of house used for living.
• Rs 30 Billion Subsidy will be given for Naya Pakistan Housing Scheme.
• Construction sector will be awarded the status of industry.
• Construction Industry Development Board to be established for the development of the Construction Industry.
• Banks will be advised to give loan at 7% interest rate for construction of houses.
• The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard.
• Withholding tax will be waived off for all construction companies; except those involved in steel and cement-related ventures.
• Stamp duty has been reduced to 2% from 5% which will reduce transfer charges.
• The transfer of property of the construction project you have purchased on installments must be before Sep 2022 to fall in the amnesty offered.
Prime minister said that agriculture and construction are the two basic employment sectors in the country, agriculture for rural and construction for urban areas. So he has decided to open companies related to construction from 14th April, by considering the needs of the unemployed people in the time of crisis. He further said if we don’t provide employment then people will come out on the roads which will automatically increase the risk of corona virus.