Fixed tax for construction industry introduced

ISLAMABAD: Fixed tax has been introduced for the builders and developers for residential, commercial and industrial plots under the ordinance approved by President Dr Arif Alvi after its approval by the federal cabinet on Friday.

For builders of commercial buildings of any size of plots in Karachi, Lahore and Islamabad, the tax has been fixed at Rs250/square foot. For Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta, the tax has been fixed at Rs230/sq. ft, while for urban areas, other than these mentioned cities, the tax rate has been fixed at Rs210 per square foot.

For residential buildings, tax for builders on up to 3,000 square feet has been fixed at Rs80/sq.ft in Karachi, Lahore and Islamabad. In Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta it is Rs65/sq.ft, while for other urban areas it is Rs50/sq.ft.

For residential buildings of 3,000 square feet or more, Rs125/sq.ft tax has been fixed in Karachi, Lahore and Islamabad; for Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta it is Rs110/sq.ft while for other urban areas this tax is Rs100/sq.ft.

Tax has also been fixed for the developers of industrial and other than industrial plots. However, there is no limit of area. On industrial plots, a tax of Rs20/square yard has been fixed in Karachi, Lahore and Islamabad, Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta. For areas other than these cities, the tax will be Rs10/sq.yds.

For other than industrial plots developers, tax of Rs150/sq.yds has been fixed for Karachi, Lahore and Islamabad. For Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta the tax will be Rs130/sq.yds. There will be Rs100/sq.yds tax on other than industrial plots development.