PM announces opening of construction sector from April 14

Islamabad: Prime Minister Imran Khan Friday announced the opening of construction sector from  April 14 to help the country’s daily wagers and laborers, affected by continued lockdown due to COVID-19 outbreak, to earn their livelihoods.

Talking to media-persons, he said the government’s decision taken in coordination with the provinces, was also aimed at reviving economic activities in the country, badly hit by the situation arising out of the Coronavirus outbreak.

The Prime Minister also announced various incentives for the construction sector including tax incentives, waivers and subsidies in the areas of sales tax, capital gain tax, withholding tax etc.

Giving details of the decisions, he said that those investing in the construction sector during this fiscal year 2020-21 would not be asked any queries about the source of their income.
Secondly, the Prime Minister said, the government had also decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land would be levied on the basis of per square yard and per foot.

He, however, added that those investing in the prime minister’s housing programme would be given 90% tax rebate and they would be required to pay just 10% of the total calculated tax amount on their projects.
The Prime Minister said that it has also been decided to waive-off withholding in cement and steel sectors.
Besides, he said, that in coordination with the provincial governments of Punjab, Khyber Pakhtoonkhwa and Sindh, it has also been decided to bring the sales tax in construction sector to 2% through consolidation of all taxes.

The Prime Minister further said that Capital Gain Tax on the sale of house was also being done away with.
He also announced Rs. 30 billion subsidy for Naya Pakistan Housing Programme, adding, further subsidy would be given on its progress.

The Prime Minister said the government has also decided to give construction sector the status of industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the construction industry in the country, he added.

The Prime Minister said all the decisions regarding the COVID-19 were being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.
He said since the Rs. 1200 billion’s stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak, the government had decided to open the construction sector.
The Prime Minister said with the agriculture sector, which was already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, was very much needed.

Prime Minister Imran Khan reiterated the stance of not full lockdown in cities as both the Covid-19 and hunger was a challenge for the nation and said the government could not confine its around 220 million population to their homes. “We are daily deliberating on how to confront coronavirus besides creating activities for the daily wagers and lowincome people – who are being adversely affected due the virus,” he added. 

To a question about role of the provinces for announcing package of constructionsector, the prime minister said after the18th Amendment the centre could not dictatethe federating units, however, it could only advise them.