Imran elevates construction sector to industry

Ag APP

ISLAMABAD: The Pakistani construction sector is now an industry, Prime Minister Imran Khan has announced, as he offered builders a raft of incentives, aiming to help labourers whose daily-wage livelihoods have been ravaged by virus lockdowns across the country.

Talking to the media on Friday, the Premier said the government’s decision — taken in coordination with the provinces — was also aimed at reviving economic activities in the country. The various incentives entail tax incentives, waivers and subsidies in the areas of sales tax, capital gains tax, and withholding taxes.

The step is the latest in a series of moves the government has enacted to stave off a looming economic crisis brought on by the coronavirus pandemic.

The development comes as Pakistan’s confirmed virus cases reached 2,500, with 40 deaths at the time of this reporting. Punjab is now the first province with confirmed infections exceeding 1,000.

During his media talk, the Prime Minister also announced that the construction sector will open on April 14. Giving details of the decisions, he said those investing in the construction sector during this fiscal year 2020-21 will not be asked any questions about the source of their income.

Secondly, the Prime Minister said, the government had also decided to bring the construction sector under the fixed-tax regime, in which the rate of tax on land would be levied on the basis of square yard and square foot.

He, however, added that those investing in the Prime Minister’s housing programme would be given 90 per cent tax rebate and they would be required to pay just 10 per cent of the total calculated tax amount on their projects.

The Prime Minister said it has also been decided to waive-off withholding tax in the cement and steel sectors. Furthermore, he said, in coordination with the provincial governments of Punjab, Khyber Pakhtunkhwa and Sindh, it has been decided to bring the sales tax in construction sector down to 2 per cent through consolidation of all taxes. The Prime Minister further said capital gains tax on the sale of houses was also being done away with. He also announced Rs30 billion subsidy for Naya Pakistan Housing Programme, adding a further subsidy would be given on its progress.

The Prime Minister said the government has also decided to give construction sector the status of industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the industry in the country, he added.

The Prime Minister said all the decisions regarding Covid-19 were being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.