Pakistan

PM Imran Khan extends date for construction industry fixed tax regime

Imran construction

Prime Minister Imran Khan has announced the extension in the fixed tax regime amnesty for the construction sector up to Dec 31, 2021.

The Prime Minister while addressing the nation said that the projects worth Rs 186 billion have been registered with FBR’s portal. In Punjab, a project, worth Rs 163 has been started.

The Prime Minister said “I was to give the construction sector good news for the New Year. We have extended the fixed tax regime to 2021,” he added to this that this has been done on the demand of the construction sector.

He also said, “The projects that are in the process of registration, amount to Rs 116 billion. We believe that the economic activity that will generate will be equivalent to Rs 1500 billion in Punjab alone and will result in 250000 jobs. Similar projects have also been started in Khyber Pakhtunkhwa, Karachi, and Baluchistan.”

He further said that “This is the first government to raise industries after 1960 and it would lead to wealth creation, loan repayment, and giving livelihood to Pakistan’s young population.”

While talking about the facilities through the fixed tax regime, the government has given regarding the construction sectors so far, Prime Minister Imran Khan said, “We gave package for low-cost housing for the 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 Rs 378 billion for the construction activity till December 31, 2021.”

He continued that the subsidy, “we have given for low-cost housing will remain in place. The interest rate will not be more than five percent on houses of five Marla and the interest rate for the houses of 10 Marla will not be more than 7 percent. For the first 100000 houses that will be built under this scheme, we have decided to give Rs 300000 per house.”

With reference to the package, announced in July for the Naya Pakistan Housing Project, the Prime Minister said, “Our government decided to give subsidies of Rs 30 billion for low-cost housing.”

Read more: PMRC signs master agreement with six banks for Low Income Housing

Premier Imran said that “The construction industry faced trouble in taking advantage of the government’s incentive earlier because the Coronavirus was at its peak and implementation took time, by opening the construction industry earlier, we avoided the negative impact.”

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