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)