Govt may incentivise developers, builders in budget

ISLAMABAD: The government may incentivise builders and developers in the budget for 2023–24 by reducing tax on filers and jacking up on non-filers. The Association of Builders and Developers of Pakistan (ABAD) has asked the government to reduce taxation on allied industries of construction, as the rate of regulatory duty and additional customs duty on the import of steel should be brought down to provide relief to the construction sector.

“The government is also considering introducing a scheme for overseas Pakistanis to invest in built-up property in dollars through official channels instead of bringing money through Hundi or Hawala,” official sources confirmed while talking to The News Monday.

Tax on immoveable property should be brought down from 2 to 1 percent, while for non-filers it should be increased from 4 to 6 or 8 percent. All these proposals were tabled before Finance Minister Ishaq Dar and Special Assistant to the PM on Revenue Tariq Pasha here on Monday. It was told during the meeting that in every project executed by the Association of Builders and Developers of Pakistan (ABAD), around 25 percent of the investment came from overseas Pakistanis but through Hundi or Hawala. They said that there is a need to introduce a scheme whereby the dollar should be brought in through official banking channels.

When contacted, former ABAD chairman Arif Jeeva said that they held meetings with the minister and SAPM on Revenue and got assurances that the government would incentivise the built-up industry by creating a difference between filers and nonfilers.

According to an official press statement issued after the meeting, a delegation of the Association of Builders and Developers of Pakistan (ABAD) called on Federal Minister for Finance and Revenue Ishaq Dar at the FBR office on the budget 2023–24 proposals.

SAPM on Revenue Tariq Mehmood Pasha, Chairman of RRMC Ashfaq Yousif Tola, the FBR chairman, and senior officers attended the meeting. The delegates from ABAD apprised the minister of the challenges currently faced by the construction industry and presented their proposals for the upcoming budget.

The delegation also assured the government of its efforts to overcome the economic challenges and boost economic and business activities in the country. Finance Minister Ishaq Dar appreciated the proposals presented by the delegation and assured them that the government is taking concrete steps to overcome the economic challenges and strengthen the economy.

He reiterated that the government will try to provide a business-friendly budget to support the masses and the economic progress and development of the country. The delegation thanked the minister for considering their budget proposals.