Peshawar: The Khyber Pakhtunkhwa (KP) government has approved PKR 8 billion in tax relief on property transfers with an aim to boost the workings of the construction sector — a news source reported on July 26. Under the package, the government has withdrawn 0.5% in registration fees and 2% of the local council tax previously applicable on all property transfers.
The government has also introduced reduced rates of sales tax on services for the construction sector and decreased the rate of capital value tax to 0.
Additionally, in order to improve the ease of doing business (particularly for the construction sector), the government is planning on eliminating multiple taxes and launching a one-window cell for convenience.
The new construction package has been prepared on the directions of Prime Minister Imran Khan and the package is based on the measures introduced by the Punjab government; albeit with improvements and adapted to KP’s laws.