ISLAMABAD: The federal cabinet has approved an ordinance for the construction industry giving legal effect to the incentive package.
Earlier this month, Prime Minister Imran Khan announced an incentive package in order to increase employment opportunities in the country amid coronavirus pandemic.
Under the ordinance, those investing in land development schemes will not be asked about the sources or origin of their investments.
A fixed tax regime is being introduced for builders and developers. There will be no withholding tax on the constructional material except cement and steel.
Builders and developers who wish to take advantage of this scheme will have to deposit their investments into bank accounts by December 31.
The builders and developers will have to get their new and ongoing projects with Federal Board of Revenue through IRIS web portal.
As per the ordinance, tax has been reduced by ninety percent for low-cost houses to be constructed under Naya Pakistan Housing Authority.
One time exemption has been given on capital gain tax for the house measuring 500 square yards and flat of 4000 square yards.
The construction industry will be eligible to avail of the same kind of facilities available to other industries for the import of plant and machinery.
Advance tax on the auction of properties has been reduced to five percent from 10 percent. Sales tax on construction services in the federal capital territory has been brought to zero on the pattern of Punjab.