One-year extension in fixed tax regime for construction sector

ISLAMABAD – Prime Minister said Thursday that new master plans of all big cities of Pakistan will be prepared to prevent unplanned spread of urbanization and to protect agricultural land.

During a briefing in Islamabad on Thursday, he said unplanned spread of cities can create food security problems in the country in future if this practice is continued unabated. 

The Prime Minister said economic activities of around 1,500 billion rupees will be started in Punjab only and will generate around 250,000 jobs as a result of massive package announced by the government for the construction sector. He said so far 186 construction projects have been registered at the FBR portal, while work on projects worth 163 billion rupees has already begun.

Imran Khan said banks have reserved 378 billion rupees for December 2021 to support the construction sector. He said a subsidy of 30 billion rupees will be provided to low income people enabling them to get their own house under affordable housing scheme.

The Prime Minister said loan subsidy at the interest rate of five and seven percent respectively will be available on houses of five Marla and above and a grant of 300,000 rupees will be given to first 100,000 houses. Imran Khan said an automated approval regime has been introduced in the federal capital, Punjab, and Khyber Pakhtunkhwa for speedy start of a housing project.

He said land digitization in Karachi, Lahore, and Islamabad will be completed by August next year. Besides, record of state land in these cities is also being completed on priority basis.

The Prime Minister said it is a good sign that record sale of cement and steel has been witnessed, which shows boom in the construction sector.

Fulfilling a major demand of the construction industry, the Prime Minister granted one-year extension in the date for the Fixed Tax regime to boost economic activity and create employment.

The Prime Minister made the announcement and said the date has been extended till 31st December next year and described it a New Year gift for the construction sector which is the key to offset negative impact of Covid19 pandemic on the national economy.

Imran Khan also extended the date for disclosures of source of income by the investors till 30th June next year and the one for buyers till 31st of March 2023. Besides, he said that the date for completion of projects has also been extended by one year.

Meanwhile, Prime Minister Imran Khan has given clear instructions to take all measures to prevent rise in prices of wheat flour, sugar and pulses as these commodities are essential items for any poor family.

He was chairing weekly review meeting of priority areas in Islamabad on Thursday. The Prime Minister also emphasised on taking steps to increase exports and find local alternatives to imports to further increase current account surplus and to avoid pressure on foreign exchange reserves.

During the meeting, the Prime Minister granted approval to online agri dashboard prepared by National Security Division, which will monitor availability of edible items’ stock and their prices at the national, provincial, and district level. The dashboard will not only play a key role in avoiding any crisis with the help of verified indicators but will also be tremendously effective in preventing hoarding and profiteering.