RELIEF TO REAL ESTATE SECTORS

PAKISTAN GOVERNMENT GIVING RELIEF TO “REAL ESTATE” SECTORS

CORONA VIRUS News News in Image Property

 

RELIEF TO REAL ESTATE SECTORS

However, opportunities for the real estate industry can be revealed under the Building industry package being finalized. The government cannot query for the source of investment to legalize property bought in the past year or to invest fresh in assets. When approached, senior FBR officials did not confirm that any new amnesty program is likely to be unveiled but indicated certain opportunities for the real estate sector to be declared under the government package for the construction industry.

 

According to well-known reports, in its attempt to promote low-cost housing initiatives, the government has agreed to offer unique tax concessions and incentives to companies/industries relevant to the construction industry. Many of the main recommendations are to reduce the disproportionate value of immovable property in certain FBR notified regions.

 

Builders and developers have suggested that overseas Pakistanis be permitted to purchase built-up properties in Pakistan on payment of 1-2 percent without knowing about the source of investment. The government has approved a streamlined fixed tax system for developers and contractors, providing low-cost housing projects with a 90 percent tax reduction.

 

According to reports, the specific contours of the scheme include:

 

  • Regional (central) authority of developers and builders.
  • Condensed return form.
  • “project-by-project” profit calculation.
  • Conflict settlement committee.
  • No provision for developers/builders to serve as a retaining agent.
  • The tax rate for commercial builders in Karachi, Lahore, Islamabad, Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Madan, Abbottabad, Quetta and other urban areas not specified.
  • The tax rate for low-cost housing schemes shall be reduced by 90%.
  • The tax rate of Rs 210 per square foot for industrial developers. (Commercial plots) and a separate certificate from NESPAK criteria.

 

According to the draft of the 2019 Special Practices Regulations for Builders and Developers, they refer to builders and developers who can want to pay income tax and prepare reports under these laws. The income measured and the tax owed on it shall be centered on “project-by-project” under the heading “Company income.”The tax due thereon on an annual basis (to the year of completion of the project) shall be determined at the above levels. The rates would be material to figure charge risk for the undertaking for the duty years when the particular venture was under development. The annual tax obligation shall be assessed on this basis, as set out in certain laws.

 

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