Tuesday, December 7, 2021
اُردُو نیوز Newspaper Live-TV(UK) Live-TV(PK)
اُردُو نیوز Newspaper
Live-TV(UK) Live-TV(PK)

Federal government prepares ordinance for construction industry

Federal government prepares ordinance for construction industry
April 15, 2020
ISLAMABAD (92 News) – The federal government has prepared an ordinance for the construction industry. According to the draft of the package, those investing in the construction sector will not be asked about their source of income. Builders and Land Developers will have to deposit the funds into bank accounts by December 31 and will be able to use money through the cross-check by September 30, 2022. Under the package, excise duty rate will be reduced by 25 per cent, tax exemption for housing projects by 90 per cent and sales tax on construction material will be reduced by 25 per cent. The package will remain in effect until June 2020. Provincial taxes will also be reduced to a reasonable extent. Under the ordinance, builders and land developers will be exempted from income tax and capital gains tax while the wealth statement will have the option to be modified within 60 days. Withholding tax on goods other than cement and fertilizer will also be exempt. The sources also said that the property prices will be set aside for taxation. Existing FBR rates will not apply. Builders and developers will be allowed 10 times the tax credit on the declared assets. Withholding tax on all construction related material has been waived off except on cement and iron. The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard. Capital gain tax on property will not be charged. The opening of construction industry is necessary to keep the economy running. Earlier, announcing an incentivized package for the construction industry, PM Imran Khan said that the sector plays an important part in development of a country. “Those investing in the construction sector will not be asked about their source of income. Withholding tax on all construction related material has been waived off except on cement and iron,” he maintained. PM Khan said that the government has decided to give the status of industry to construction sector. “The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard,” he added. Imran Khan further said that capital gain tax on property will not be charged. “The opening of construction industry is necessary to keep the economy running,” he added. He said a Construction Industry Development Board is also being set up to promote the construction industry. “The sector will be opened from April 14. The government is also devising strategy to lower sales tax in coordination with the provinces,” the premier explained.