Thursday Dec 24, 2020
KARACHI: Given the overwhelming response and hindrances in regulatory approval, the government mulls over to extend the last date for availing an amnesty related to developers and builders, The News reported citing sources on Thursday.
The last date for registering projects under the scheme is December 31, 2020. Besides, builders and developers were given time to deposit their undeclared money in a separate bank account for the completion of projects by September 30, 2022.
Sources revealed that the prime minister was apprised that those projects were at different stages of regulatory approval during a recent high-level meeting.
He was also informed about developers and builders showing interest and depositing around Rs800-900 billion for about 500 housing projects.
The Centre was considering extending the date up to June 30, 2021, from the current last date of December 31, 2020, after noting the development.
“Furthermore, the project completion date from September 30, 2022, to June 30, 2023, is also under consideration,” sources added.
In April, PM Imran Khan announced an incentive package for the realty sector which has a vast scope and offers handsome tax incentives to the industry.
The incentive package was promulgated through Tax Laws (Amendment) Ordinance, 2020 whereby a new section 100D and Eleventh Schedule were inserted in Income Tax Ordinance 2001 through Finance Act, 2020.
A host of incentives include a fixed tax regime and withdrawal of withholding tax.
However, the main incentive given under this package includes immunity from questioning the source of investment on money deposited in a bank account and the money spent on new or existing projects started from April 2020.
Moreover, this immunity is available only to those projects that should be completed by September 30, 2022.
Association of Builders and Developers (ABAD) Chairman Fayyaz Ilyas has appreciated the incentive package and said that due to the new coronavirus, all business activities witnessed a slowdown.
The chairman said when the package was launched, the government had announced that relevant authorities would grant regulatory approval within 45 days. However, it was not done as per commitment, he added.
He said that the association had urged the prime minister to extend the date for effective utilisation of the package.
ABAD had demanded the premier to extend the date for at least one year, Ilyas added.