Prime Minister Khan announced the special package for construction industry.
This package is long due but IMF opposed the idea saying it will create injustice in the tax system.
Here are some key points, the details will follow later:
1. FBR won’t ask you about the source if you invest in the construction business in 2020.
2. No withholding tax except for the cement and steel industry.
3. The government will charge a Fix tax rate based on square feet or square yards.
4. No Capital gains tax will be payable on the sale of houses.
5. If you investment in Naya Pakistan Housing scheme, you will pay only 10% of the fixed tax rate.
6. The federal government will work with provincial governments to lower the sales tax rate.
It’s an in time decision taken by Khan, and it will boost the construction industry and the economy of Pakistan to a great deal.