Govt 'to incentivise' construction sector in upcoming budget

• ABAD asks govt to reduce taxation on allied industries.
• Govt aims to bring investment from overseas Pakistanis.
• ABAD says tax on immovable property should be dropped.

ISLAMABAD: Adhering to the demand of the Association of Builders and Developers of Pakistan (ABAD), the government is likely to incentivise builders and developers in the upcoming budget — expected to be announced on June 9 — by reducing tax on filers and jacking up on non-filers, The News reported Tuesday.

The association has asked the government to provide relief to the construction sector in the upcoming federal budget for the fiscal year 2023-24 by reducing taxation on allied industries of construction, as the rate of regulatory duty and additional customs duty on the import of steel should be brought down.

“The government is also considering introducing a scheme for overseas Pakistanis to invest in built-up property in dollars through official channels instead of bringing money through hundi or hawala,” sources told the publication.

The association, during a meeting with Finance Minister Ishaq Dar and Special Assistant to the PM on Revenue Tariq Pasha at the Federal Board of Revenue (FBR) office, proposed that (for filers) tax on immovable property should be brought down from 2% to 1%, while for non-filers it should be increased from 4% to 6-8%. 

The government officials were informed that in every project executed by the ABAD, around 25% of the investment came from overseas Pakistanis but through hundi or hawala. 

They said that there is a need to introduce a scheme whereby the dollar should be brought in through official banking channels.

When contacted, ABAD former chairman Arif Jeeva said that they held meetings with the minister and SAPM on revenue and got assurances that the government would incentivise the built-up industry by creating a difference between filers and nonfilers.

The delegates also apprised the finance minister of the challenges currently faced by the construction industry and presented their proposals for the upcoming budget.

The delegation also assured the government of its efforts to overcome the economic challenges and boost economic and business activities in the country. 

Dar assured the delegation that the government is taking concrete steps to overcome the economic challenges and strengthen the economy.

He reiterated that the government will try to provide a business-friendly budget to support the masses and the economic progress and development of the country.