To revive the construction sector from the coronavirus-induced slowdown, the Khyber Pakhtunkhwa (KP) government has reduced taxes for the construction sector.
The KP Board of Revenue has reduced 80 percent of taxes for the sector.
KP Finance Minister Taimoor Khan Jhagra has said that four different types of taxes levied on the construction industry have been abolished, while the land registration tax has been reduced from the previous 6 percent to 2 percent. Abolished taxes include value-added capital tax, local government tax, and stamp duty.
He said that the move will encourage the construction industry to flourish in the province. Syed Zafar Ali, a senior official of the revenue board, said that the provincial construction industry was severely impacted due to COVID-19.
The tax cuts by the provincial government will help revive and bring additional investment into the sector.
Moreover, the move will also help create employment opportunities in the province. He added:
The government’s job is not just to earn money but to provide more facilities and relief to the public.
He was hopeful that the initiative will help revolutionize the construction sector and also benefit other associated industries.