Special tax incentives in sight for construction sector

Special tax incentives in sight for construction sector

ISLAMABAD: Prime Minister (PM) Imran Khan acknowledged the contribution of the construction sector in Pakistan’s economy, with the government deciding to provide special tax relief and incentives to businesses and industries related to construction sector and support low-cost housing projects.

A meeting was held for discussions on the restoration and promotion of the construction sector, with tax authorities informing the PM that the government has finalised a simplified fixed tax scheme for developers and builders, offering a 90% reduction in tax for low-cost housing schemes, chiefly the Naya Pakistan Housing Authority (NPHA).

The premier said that promotion of the sector is among the top priorities of the government, adding that development of the construction sector is essential to accelerate economic growth. As many as 40 industries are associated with construction and have a huge potential to create job opportunities for the youth.

The meeting’s participants discussed various suggestions on provision of loans for construction, uniform tax rates in provinces and enhancing public private partnership in the sector.

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