Salient Features of Tax Relief Package for Construction Sector

The federal government has recently announced a Tax Relief Package for Construction Sector in order to counter the economic impact of the Coronavirus (COVID-19) pandemic.

The package includes restoration of economic activity which will benefit 40 construction linked industries and will generate more employment opportunities.

Salient Features of Tax Relief Package for Construction Sector;

  • 90% tax reduction on investment in the Naya Pakistan Housing Scheme
  • Source of investment for the Construction Sector will not be probed
  • Fixed tax scheme with the facility to pay the tax liability in quarterly installments
  • Easy and simple tax registration
  • Concession in income tax and capital gain tax for builders and land developers
  • One time exemption of capital gains tax on sale/purchase of personal accommodation (up to 500 square yard house or 4000 square feet apartment)
  • Exemption from requirement of withholding tax on building material and services (except steel and cement)

Tax Relief Package for Construction Sector - The federal government has recently announced a Tax Relief Package for Construction Sector in order to counter the economic impact of the Coronavirus (COVID-19) pandemic. The package includes restoration of economic activity which will benefit 40 construction linked industries and will generate more employment opportunities. Salient Features of Tax Relief Package for Construction Sector; • 90% tax reduction on investment in Naya Pakistan Housing Scheme • Source of investment for Construction Sector will not be probed • Fixed tax scheme with facility to pay tax liability in quarterly installments • Easy and simple tax registration • Concession in income tax and capital gain tax for builders and land developers • One time exemption of capital gains tax on sale/purchase of personal accommodation (up to 500 square yard house or 4000 square feet apartment) • Exemption from requirement of withholding tax on building material and services (except steel and cement)