Treasure Magazine

Treasure Magazine

PM extends fixed tax regime for construction sector till 2021

2 min read
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‘This had been a big demand from the construction industry which was why they were given an “extra year”: PM

Prime Minister Imran Khan on Thursday announced that the fixed tax regime for the construction sector that was introduced earlier this year had been extended to Dec 31, 2021.

“I want to give [the construction sector] good news for the New Year. We have extended the fixed tax regime to Dec 31, 2021,” the PM said during a live address to the nation.

He said this had been a big demand from the construction industry which was why they were given an “extra year“.

During his address, the premier said he was very happy to announce that “projects worth Rs 186 billion have been registered with the FBR (Federal Board of Revenue) under the incentives we had given for construction in April”.

“The projects that are in the process of registration amount to Rs 116bn,” he said.

“We believe that the economic activity that this will generate only in Punjab will be equivalent to Rs 1,500 billion and will result in 250,000 jobs. Similar projects have also been started in Khyber Pakhtunkhwa, Karachi and Balochistan.

Talking about the incentives his government had given, the premier said: “We gave packages for low-cost housing for salaried people who were unable to afford houses [previously]. Its first success was the foreclosure law. For the first time in Pakistan, banks are financing houses. Banks have vowed to allocate Rs378bn for construction activity till Dec 31, 2021.

“The subsidy we have given for low-cost housing [will remain in place]. The interest rate will not be more than five per cent on houses of five marlas and the interest rate for houses of 10 marlas will not be more than 7%. For the first 100,000 houses that will be built [under this scheme], we have decided to give Rs 300,000 per house.”