Industry status

Construction sector obtains industry status, PM announces – Pakistan

  • Those who invest in the construction sector will not be asked about their source of income: PM.
  • Imran says withholding tax on all construction-related materials has been removed except cement and iron
  • The tax rate will be set for the construction industry, and builders will be charged per square foot or per square meter, the prime minister said.

(Karachi) Prime Minister Imran Khan said the government has decided to give industry status to the construction sector.

Announcing a special package for the construction industry on Friday, he said the sector plays an important role in a country’s development.

The prime minister said those who invest in the construction sector will not be asked about their sources of income. “The withholding tax on all construction-related materials has been abolished, except on cement and iron,” he explained.

Prime Minister Imran said real estate capital gains tax would not be charged. “Opening up the construction industry is necessary to keep the economy going,” he said.

“The sector will be open from April 14,” noted the Prime Minister.

“The government is also developing a strategy to reduce the sales tax in coordination with the provinces.”

He said the capital gains tax would not apply to those who sell properties. The tax rate will be set for the construction industry, and builders will have to pay a tax per square foot or square yard.

He said the government would provide a subsidy of Rs 30 billion for the Naya housing program.

“We also establish the Construction Industry Development Council to promote the sector.

Imran argued that the government’s concern to open up the construction industry is to facilitate daily betting. He said the government is also developing a strategy for those who cannot afford rent.

He said the construction industry is the second largest sector in the country that provides jobs for the people. He maintained that the government wanted to strike a balance between maintaining a lockdown and maintaining the construction sector to save people from hunger and poverty.

Regarding the coronavirus situation in Pakistan, Imran said, “It is a dangerous perception that Pakistanis are immune to the coronavirus. We must take preventive measures to deal with the pandemic. “

He said the coronavirus has become a challenge for the whole world. Imran Khan stressed that the government cannot “lock up 220 million people” with a strict curfew to control the spread of Covid-19.

The prime minister said that so far 10 million people have requested support through a relief fund.

On the occasion, the Prime Minister’s advisor on finance, Hafeez Sheikh, said the government has allocated Rs 200 billion to those who have lost their jobs or faced income problems during the coronavirus crisis.

He said a mechanism is being formulated to ensure funds are provided to the most deserving segments of society.