In a bid to promote the construction sector and other 40 related industries to it, the Sindh government has taken a big decision and has decided to abolish capital value tax.
Sindh Assembly unanimously passed the Sindh Finance (Amendment) Bill-2020 to abolish capital value tax in the province.
The bill was moved in the house by Sindh Revenue Minister Makhdoom Mahboob Zaman. The bill envisages different incentives for the construction sector and is aimed at facilitating 40 different industries associated with the construction and real estate sectors.
According to the Sindh Finance Amended Bill, the Sindh government will not charge this tax on the leasing, sale, and purchase of the immovable property.
Provincial revenue minister Makhdoom Mehboobul Zaman claimed that the Sindh government used to earn over Rs. 5 billion with this tax, but the amendment has been made for a good cause. The bill was passed for a national cause and the Sindh government has sacrificed its revenue for the country, he added.
He said PPP’s chairman deserved the credit for taking this step. The provincial minister further said the federal government should also take such measures.
The abolition of capital value tax will benefit the construction industry, the real estate sector, and other related businesses and will increase employment and business opportunities for millions of people. It will not only revive the construction industry but will ensure that other allied industries also thrive.
The opposition leader Firdous Shamim Naqvi asserted that Sindh already recovered more property tax than the other provinces, but provided minimal benefits to those linked to the construction industry. He said the Sindh government should emphasize on facilitating the construction sector.
Naqvi said the construction industry should also be encouraged in Hyderabad, Sukkur, and Larkana. He said the Sindh government should withdraw taxes on small housing units too.