KARACHI: Association of Builders and Developers of Pakistan (ABAD) has welcomed the incentive package for construction industry announced by the prime minister.
In a statement on Friday, ABAD Chairman Mohsin Sheikhani termed the incentives announced by Prime Minister Imran Khan as a historic package for the construction industry, which would be a turning point for the economy of Pakistan.
ABAD was demanding incentives for the construction sector because more than 70 allied industries were depending on the construction sector. “We are indebted to the prime minister for reviving the construction industry.”
The PM has announced that no question would be asked about investment in the construction sector this year, he said, adding that there would be a fix tax regime (FTR) for the sector, while 90 percent fixed tax would be waved off if invested in Naya Pakistan Housing Scheme.
The government would also wave of the withholding taxes for the sector, and the federal government would discuss sales tax reduction with the provinces.
Punjab and Khyber Pakhtunkhwa have reduced sales tax to two percent. Also, no capital gain tax would be charged when selling a family house. A Rs30 billion subsidy has also been announced for the Naya Pakistan Housing Scheme.
ABAD chairman said that upgrade of the construction industry to a sector was long awaited, and the builders looked forward to the establishment of the Construction Industry Development Board.
He appreciated the PM’s incentives and urged for a universal policy for building approval across the country to kick-start rapid construction activities.