Prime Minister Announces Construction Sector to Resume Work from April 14

While announcing the package, the Prime Minister clearly said those who invest in the construction sector will not be asked to mention their sources of income. Moreover, a fixed tax will be introduced in the construction sector and if any investor invests in construction projects in Naya Pakistan Housing Scheme, a 90% tax will be removed and he will have to pay only a 10% tax.

Briefing the media about the details of the construction package, Prime Minister Imran Khan said that the withholding tax on construction will be lifted from all sectors but cement and steel will not be able to benefit from this scheme. He also said that the sales tax is being brought down in coordination with the provincial governments. For individual families, PM Khan said that there will be no capital gain tax for those who sell their house.

Other details of the package are as follows:

• A subsidy of thirty billion rupees will be given to Naya Pakistan Housing Project to spur the construction activities.
• Construction Industry Development Board is also being set up to promote the construction industry.
• A unified national response will help address the challenge of the COVID-19 pandemic.
• 90 percent fixed tax will be removed in construction projects under Naya Pakistan Housing Authority.
• The construction sector will resume work from April 14.
• Daily wagers, developers, and builders will benefit from the incentivized package.

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. He said those who invest in the sector will not be asked questions about their source of income.