PM Imran announces incentives for the construction sector

Builders & Realtors of Islamabad welcome the move

By: Junaid Qayyum Abbasi 
Prime Minister of Pakistan, Imran Khan

ISLAMABAD: Prime Minister Imran Khan on Friday elevated the status of the construction sector to that of an industry while announcing incentives for investors and businessmen as the government tries to mitigate the economic impact of the coronavirus outbreak, While speaking to journalists, the premier said that a board will also be formed to address all issues and matters related to the industry. He added that all industries that are connected to construction will continue to function even during the lockdown. He said that the reason he was paying attention to the construction sector was that it generated jobs for daily wage workers, many of whom have lost their income due to the ongoing lockdown. All the people investing in the construction sector this year will not be questioned about their source of income. The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard. People carrying out construction in the Naya Pakistan Housing Scheme for the poor will only have to pay 10 per cent of the fixed tax. Withholding tax will be waived off for all construction sectors except the formal sectors of steel and cement. Sales tax will be reduced in coordination with provinces. Any family selling their house will not have to pay any capital gains tax. A subsidy of Rs 30 billion to be given for the Naya Pakistan Housing Scheme. Construction sector to be given the status of an industry. Construction Industry Development Board to be set up to support the sector.

The president of the Federation of Realtors Pakistan, Sardar Tahir Mehmood, Chairman Ejaz khan, Vice Chairman Najeeb Gull Abbasi, Vice President And Spokesperson Rana Muhammad Akram, President Gulberg Green Estate Agents Association Islamabad Malik Najeeb Ilahi, General Secretary Muhammad Naveed Malik, Ex-Chairman Association of Builder’s and Developers Arif Yousaf Jeewa, Ex-President IEAA Ch Abdul Rauf, Chief Executive Red Sun Associates Shahid Chanzeb, Dr Muhammad Arshad, and others have welcomed the steps promised by the Prime Minister and expressed their optimism that these measures will help in addressing the economic problems of the country.