Friday Apr 17, 2020
ISLAMABAD: The federal cabinet on Friday approved an ordinance for the construction industry that will give special tax breaks to builders and land developers as business suffers due to the spread of the novel coronvirus in Pakistan and across the world.
The tax breaks will be applicable as soon as the ordinance is officially notified, sources told Geo News. Under the ordinance, those investing in land development schemes will not be asked about the sources or origin of their investments into the schemes.
Builders and developers who wish to take advantage of this scheme will have to deposit their investments into bank accounts by December 31. These builders and developers will then be bound to withdraw money from these accounts for the investments.
Some of the important parts of the ordinance are listed below. Fixed tax regime for builders and developers would include:
Prime Minister Imran Khan had earlier this month said the government would announce a Rs100 billion package for the construction industry as it tries to keep the country afloat amid the coronavirus epidemic.
“We have decided we will give necessary incentives to the construction industry in order to provide job opportunities to people during this time of crisis,” PM Imran said while addressing a ceremony in Islamabad.
“We will support the industrial sector and give them incentives. The commerce ministry has also prepared a list of industries which can be reopened in the current situation,” he said.
The prime minister added that the construction of roads and infrastructure does not entail the danger of the spread of coronavirus. “We will develop the necessary SOPs to ensure the safety of workers."
Authorities in Sindh and Punjab on Tuesday issued notifications regarding the extension of a coronavirus lockdown but identified industries and businesses that would be permitted to resume operations.
The National Coordination Committee of the federal cabinet, that met earlier with Prime Minister Imran Khan in the chair, had decided to ease the virus lockdown and allow limited economic activity in the country to mitigate the impact of an economic crisis.
Various low-risk industries and sectors, including construction, chemical manufacturing, fertilizers, mining, glass manufacturing, e-commerce, and some others, were given the green light to re-open with safety protocols in place.