PM Imran Khan announces package for the construction industry

PM Imran Khan announced a package to address hindrances faced by the construction sector. This should bode well for the demand for cement and steel. Key takeaways from his speech are as follows:

  1. All the people investing in the construction sector this year will not be questioned about their source of income.
  2. The tax rate will be fixed for the construction sector, and constructors will be charged tax per square foot or square yard.
  3. People carrying out construction in the Naya Pakistan Housing Scheme for the poor will only have to pay 10 per cent of the fixed tax.
  4. Withholding tax will be waived off for all construction sectors except the formal sectors of steel and cement.
  5. Sales tax will be reduced in coordination with provinces.
  6. Any family selling their house will not have to pay any capital gains tax.
  7. A subsidy of Rs30 billion to be given for the Naya Pakistan Housing Scheme.
  8. Construction sector to be given the status of an industry.
  9. Construction Industry Development Board to be set up to support the sector.