Prime Minister Imran Khan granted one-year extension in date for the Fixed Tax regime on Thursday.
The move has been dubbed to boost economic activity and create employment. Describing it a new year gift for the construction sector, the PM announced that the date has been extended till Dec 31, 2021. The date for disclosures of the source of income by the investors has also been extended till June 30, 2021 and the one for buyers till March 31, 2023.
The government would promulgate a Presidential Ordinance Thursday night to extend tax incentives under the amnesty scheme for the construction sector.
Sources told ProPakistani that the Federal Board of Revenue (FBR) has sent the draft of the Tax Laws (Amendment) Ordinance, 2020 to the Law and Justice Division for vetting. Following vetting, the Ordinance would be signed by the President and would be issued.
The Presidential Ordinance would amend the relevant sections of the Income Tax Ordinance 2001 for extension in the construction package.
Through the Ordinance, the fixed tax regime would be extended up to December 31, 2021; exemption under section-111 of the Income Tax Ordinance 2001 from disclosing the source of investment would be extended up to June 30, 2021; projects completion date of September 30, 2023, would be extended one more year and the exemption for disclosing the source of investment for buyers would be extended till March 31, 2023.
The prime minister had announced the PTI government’s construction package, allowing people to invest in the construction sector without disclosing the source of income, in April this year.
Alongside this, Prime Minister Imran Khan has also said that his government will prepare new master plans for all big cities of Pakistan to prevent the unplanned spread of urbanization and protect agricultural land.
Briefing media in Islamabad this afternoon, he said the unplanned spread of cities can create food security problems for Pakistan in the future if this practice continues unabated.
The Prime Minister said that economic activities of around Rs. 1,500 billion will soon start in Punjab and generate around 250,000 jobs as a result of the massive package announced by the government for the construction sector.
He informed that 186 construction projects have been registered on the FBR portal so far and working on projects worth Rs. 163 billion has already begun.
Imran Khan further informed that the banks have reserved Rs. 378 billion for December 2021 to support the construction sector. He added that the government would provide a subsidy of Rs. 30 billion to low-income households to facilitate them in getting their own house under the affordable housing scheme.
He said that a loan subsidy would be available on the houses of five marla and above, at the interest rate of five and seven percent, respectively. He further informed that a grant of Rs. 300,000 will also be given to the first 100,000 houses.
The PM said that the government has introduced an automated approval regime in the Federal Capital, Punjab, and Khyber Pakhtunkhwa for speedy approval for housing projects.
He said that the land digitization in Karachi, Lahore, and Islamabad will be completed by August next year. He further said that the government is also creating a record of state land in these cities on a priority basis.
The Prime Minister said that the government would fully back the construction sector and encourage wealth creation to generate jobs for our youth and pay back our debt.
He said that it is a good sign that the cement and steel sectors have seen record sales this year, which shows a boom in the construction sector.