The government has announced special incentives for the construction industry to help jump start the country’s economy amid COVID-19 outbreak
The incentives include (i) those who would invest in the industry this year would not be asked questions about the source of income; (ii) a fixed tax for construction sector is being introduced at per square feet; (iii) those who would pay less tax than 90 percent would be waived off, if they undertake construction for Naya Pakistan Housing Project (for low-income group); (iv) withholding tax on all materials and services for construction sector would be abolished except for steel and cement sector; (iv) sales tax are being reduced in coordination with the provinces, Punjab and Khyber-Pakhtunkhwa have agreed to reduce it to two percent; (v) those families selling their houses would not be charged capital gain tax (CGT), and; (vi) Rs30 billion subsidy would be given to the Naya Pakistan Housing Scheme.
These government measures have been termed by the market experts as historic and are expected to help the construction and affiliated industries during this extreme economic crisis.
