Fixed tax regime for construction sector extended till Dec 31, 2021

Prime Minister Imran Khan announced on Thursday that the fixed tax regime for builders and developers to boost the construction sector had been extended to December 31, 2021.

“This had been a big demand from the construction industry, which was why they were given an extra year,” the premier said while addressing a press conference after chairing a meeting on the progress in the construction sector.

He maintained that the sector was experiencing an upward trajectory, adding that, “This rise can be accredited to the record number of cement sales across the country.”

During the presser, PM Imran vowed that his Pakistan Tehreek-e-Insaf (PTI) led government will back the construction industry, and help remove all obstacles and red-tapism hindering the industry’s growth.

The premier was especially pleased at the success of his government at obtaining a positive verdict regarding the foreclosure law.

“For the first time in Pakistan, banks are financing houses, and the lower class will be able to afford their own home,” the premier said. He said, under the scheme the banks would extend loans worth Rs378 billion by Dec 2021.

PM Imran said the government would provide a grant of Rs 300,000 each for the construction of first 100,000 houses. He said the major civic development authorities, like the Capital Development Authority and Lahore Development Authority among others, had initiated automated approvals.

The premier added that masterplans of all major cities were being revised.

 

Prime Minister @ImranKhanPTI expressing his views regarding construction sector https://t.co/lYiOeaTFP9
— Radio Pakistan (@RadioPakistan) December 31, 2020

 

The premier added that the government was also digitising records of lands initially in Karachi, Islamabad and Lahore, while it was also in the process of digitising all government lands as it was dead capital, and needs to be taken into account.

Prime Minister Imran Khan also extended the date for disclosure of source of income by investors till June 30, 2021, and the one for buyers till March 31, 2023.

The prime minister had announced PTI government’s construction package, allowing people to invest in the construction sector without disclosing the source of income, in April this year.

According to the Federal Board of Revenue the fixed tax scheme is applicable to builders and developers, who opt for the scheme by registering their projects with the FBR. Builders and developers eligible for this fixed tax scheme include individuals, a company or an Association of Persons.

Prime Minister Imran Khan said so far 186 projects have been registered with the FBR, under the Construction package, while projects worth another Rs 116 billon were in the pipeline. He said work on 163 projects has been launched in Punjab, while projects worth Rs 136 billion were in approval phase.

He said it was expected that the measures would generate an economic activity worth Rs 1500 billion and create 250,000 jobs in Punjab alone.

Khan said similar projects were in different phases in Khyber-Pakhtunkhwa, Karachi and Balochistan.

With additional input from APP.

(This story has been published from The Express Tribune feed, without modifications to the text)