Prime Minister Imran Khan Announces Incentives For Construction Sector, A Major Development In Construction Sector
Prime Minister Imran Khan announced an incentivized package for the construction industry in order to increase employment opportunities in the country in the wake of coronavirus outbreak. He said that the sector plays an important part in the development of a country.
The package has the following incentives:
- All the people investing in the construction sector this year will not be questioned about their source of income.
- The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard.
- People carrying out construction in the Naya Pakistan Housing Scheme for the poor will only have to pay 10 per cent of the fixed tax.
- Withholding tax will be waived off for all construction sectors except the formal sectors of steel and cement.
- Sales tax will be reduced in coordination with provinces.
- Any family selling their house will not have to pay any capital gains tax.
- A subsidy of Rs30 billion to be given for the Naya Pakistan Housing Scheme.
- Construction sector to be given the status of an industry.
- Construction Industry Development Board to be set up to support the sector.
The prime minister said that the government aimed to “find a balance” between continuing a lockdown and avoiding unemployment. He said that the Western countries are facing the coronavirus on one hand and economic fallout on the other. But “in Pakistan, we have corona on one hand and poverty on the other,” he told reporters and added: “You cannot lock up 220 million people.”
The premier expressed concerns that if the lockdown continued for a long time, people would become desperate and come out on the streets. Not only would that lead to a spike in infection rate but also worsen the economic situation. On the occasion, Advisor to PM on Finance Hafeez Sheikh said the government has allocated Rs200 billion for those who have lost their jobs or facing income issues during the coronavirus crisis. He said a mechanism is being formulated to ensure that funds are provided to the most deserving segments of the society.