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