Islamabad: The Federal Board of Revenue (FBR) on Monday notified its decision to exempt sales tax on the services provided by the city’s property developers and promoters, according to news sources.
This initiative is aimed at providing relief in terms of sales tax for property developers and promoters, along with allied services providers to low-cost housing schemes, by slashing their sales taxes. As per the decision, the Naya Pakistan Housing Development Authority (NPHDA) or the government’s Ehsaas Initiative will now fund and approve these schemes.
Reportedly, the individuals who choose to avail this exemption cannot then claim input tax refunds or adjustments later. This exemption of sales taxes on services will be notified by provinces to their respective departments.
Amid the coronavirus pandemic, the federal government has formulated an amnesty scheme for the construction sector. Such relief measures have been taken in order to give the industry a boost and to create low-risk employment for daily wagers.