Recently, the details of the incentive package were professed by Prime Minister Imran Khan on Friday, 3rd of April, 2020. He announced that the government has made the decision to open construction sector and has encouraged efforts to be made on construction and agricultural advancement starting April 14, in order to facilitate the country’s informal labour demographic – Moreover, to debut his term ‘historic’ relief package for the growth of industry, according to the news sources.
Detailed information regarding the Incentive Package announced for the Construction Sector
Those investing in the construction sector in 2020 will not be questioned about their sources of income, and there will be a fixed tax regime instigated on ‘per square feet’ bases and ‘per square yard’ for the progress of construction sector.
Tax impositions will be reduced by 90% for the Naya Pakistan Housing Programme (NPHP) development and construction. Moreover, withholding tax will be waived-off for all the construction companies; except the ones that are involved in steel and cement businesses.
It was revealed that PKR 30 billion in funding for Naya Pakistan Housing Scheme; Capital Gains Tax (CGT) will also be waived for families who are selling their houses. The construction sector will be given the ‘Industry Status’ and a ‘Construction Industry Development Board’ will be set forwarded for development to normalize its workings
The PM further addressed in his speech that the enduring nationwide lockdown to counter the coronavirus pandemic has been causing immense disturbances to Pakistan’s economy and harmfully affecting nation’s labour class (Daily wage Workers)
He stated that the developments in construction sector will start from 14th of this month. He also said that the coronavirus pandemic has become a global challenge however, the way it is impacting is slightly different in Pakistan in comparison than how it impacts the Western countries. He further stressed upon how we are facing a dual challenge of coronavirus, as well as hunger and economic crisis.
Prime Minister Imran Khan said lockdown will only be able to take effect successfully when it will be entirely be implemented across the entire nation. He said agriculture and construction are the two main employ retaining segments in the country and many people in Pakistan are associated as well as affected with the changes it will undergo.
The Prime Minister addressed that a Construction Industry Development Board is being set up in order to encourage the construction industry. He also said that the government’s concern to open up the construction sector set in motion to facilitate the daily wagers for their earning relief.
He also said that the government is coming up with a strategy for the ones who are not able to afford paying for house rent. He spoke about the importance of construction industry and how it is the second largest sector in the country, which provides employment to the people of Pakistan.