ISLAMABAD: The Federal Board of Revenue (FBR) has said that 348 people have registered 389 projects with a total estimated cost of Rs157 billion so far under the Prime Minister’s construction package.
The pace of registration is getting momentum as the last date of December 31st 2020 is approaching fast, said FBR in a statement. “The Federal Board of Revenue and Naya Pakistan Housing Development Authority like to proudly remind the public at large and construction sector investors that, the Prime Minister of Pakistan’s construction package for builders and developers is in full swing,” the statement added.
The requirements for availing the package are pretty simple, it said, adding every builder and developer is required to register on computer-based IRIS Software of the FBR before 31st December and the projects are required to be completed before 30th September 2022.
The construction package for builders and developers was promulgated through Tax Laws (Amendment) Ordinance, 2020 whereby a new section 100D and Eleventh Schedule were inserted in Income Tax Ordinance 2001.
The statement said that the construction package was vast in scope and offers attractive tax incentives, adding it was applicable to both the builders and developers of the land and covers both the new and existing construction and development projects.
The tax calculated is reduced by 90% in cases of low-cost housing projects. Moreover, to facilitate the shareholders of limited companies, the dividend income of the shareholders has been made tax free. The PM Package for construction also provides for many concessions from withholding taxes.
In order to mobilise investment, complete immunity from probe regarding the sources of investment has been provided to the builders/developers and to the buyers of the properties of such projects subject to fulfillment of certain conditions.
The requirements for registration include the provision of a bank account, ownership documents and an approved plan. The FBR System also provides for temporary registration pending completion of approvals and all information is provided on their website.