Mohsin MunirKey points (for builders & house construction services companies) of the relief package announced by the Government of Pakistan in collaboration with all the Provincial governments.
– Construction sector has been given the status of an INDUSTRY and income from this shall be considered as a separate class
– Any investment in construction sector till 30th June 2022 shall not be questioned for the source of income
– Fixed tax rate shall be applied on all types of constructions and rate proposed is 50 Rs / sqft of construction (covered area)
– Withholding taxes shall be waived off/reduced on all construction sectors except steel and cement
– Sales tax to be reduced in coordination with the provincial governments
– No capital gain tax for builder who is selling his first project/house
– No capital gain tax for family selling inherited house
– No tax to be withhold (on services such as masonry, plumbing, electrician, shuttering, scaffolding, carpenters etc) by the builders provided that the builder or developer are chargeable to sales tax at fixed rate mentioned above