PM announces construction sector reopening from April 14 to help daily wagers and laborers

PM announces construction sector reopening from April 14 to help daily wagers and laborers who remain affected because of continued lockdown .

While talking to teh media, Prime Minister Imran Khan made this announcement today (Friday),

He said it would help the country’s daily wagers and laborers to earn their livelihoods.

PM announces construction sector reopening

He further said that the government took this decision taken in coordination with the provinces.

The Prime Minister said it also aimed at reviving economic activities in the country.

He noted the situation arising out of the Coronavirus outbreak badly hit economic activities. .

Moreover, he 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.

He said that those investing in the construction sector during the year 2020, 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.

Prime Minister’s housing programme

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 Pakhtunkhwa and Sindh, they have decided to bring the sales tax in construction sector to 2% through consolidation of all taxes.

Meanwehile, the PM 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.

PM announces construction sector reopening

The Prime Minister said the government has also decided to give construction sector the status of industry.

He said govt has also 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 government had decided to open the construction sector since the Rs1200 billion’s stimulus package which the federal government had announced to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak. 

The Prime Minister said the agriculture sector already open and providing jobs to people in villages.

Now, he said the opening of construction sector, the main source of employment in urban areas, needed vey much.