Construction sector being given industry status, announces PM

Those investing in the construction sector will not be asked about their source of income: PM. Imran says with
Updated 03 Apr, 2020
  • Those investing in the construction sector will not be asked about their source of income: PM.
  • Imran says withholding tax on all construction related material has been waived off except on cement and iron
  • The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard, says prime minister.

Announcing special package for construction industry on Friday, he said that the sector plays an important part in development of a country.

The prime minister said that those investing in the construction sector will not be asked about their source of income. "Withholding tax on all construction related material has been waived off except on cement and iron,” he explained.

Prime Minister Imran said that capital gain tax on property will not be charged. "The opening of construction industry is necessary to keep the economy running," he said.

"The sector will be opened from April 14," the PM remarked.

"The government is also devising strategy to lower sales tax in coordination with the provinces."

He said that capital gain tax will not be applicable on those selling properties. The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard.

He said that the government will pay Rs30 billion subsidy for Naya Housing Scheme."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 rate," Imran elaborated.

"We are also establishing Construction Industry Development Board to promote the sector."

Imran maintained the government's concern to open up the construction sector is to facilitate the daily wagers. He said that the government is also making a strategy for those who cannot afford to pay house rent.

He said the construction industry is the second largest sector in the country which provides employment to the people. He maintained the government wants to create a balance between maintaining a lockdown and keeping the construction sector running to save people from hunger and poverty.

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

He said the coronavirus has become a challenge for the whole world. Imran Khan pointed out the government cannot "lock up 220 million people" through a harsh curfew to control the spread of Covid-19.

The PM said that so far, 10 million people have applied for support through relief fund.

On the occasion, Adivsor to PM on Finance Hafeez Sheikh said the government has allocated Rs200 billion for those  who have lost their jobs or facing income issues during the coronavirus crisis.

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

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