ISLAMABAD: Federal Government has announced to waive off 5% General Sales Tax (GST) on construction projects and property operations.
The announcement was made after the amendment of ICT Ordinance 2001 by the Federal Board of Revenue (FBR), in order to incentivize the real estate developers and affiliated players in this sector. The incentive package is applicable on sales worth PKR 50 million annually.
Low-cost housing projects coming under Pakistan Development Authority(PDA) will be eligible to avail of this waiver. In addition to this, the retailers, developers, and builders availing this waiver will be allowed to file for tax-returns and refunds.
Additionally, every approved or sponsored low-cost housing project under the Pakistan Development Authority (PDA) will also be qualified to avail of this waiver. The waiver is to support 70 sister industries including cement, steel, hardware, glass, wood, etc. This news comes as a relief to the ailing Pakistan economy and is meant to cater to the issue of unemployment in the wake of the ongoing pandemic.
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