{"id":64264,"date":"2020-04-17T16:31:10","date_gmt":"2020-04-17T11:31:10","guid":{"rendered":"https:\/\/www.zameen.com\/news\/?p=64264"},"modified":"2020-04-17T16:36:42","modified_gmt":"2020-04-17T11:36:42","slug":"cabinet-approves-construction-sector-relief-package-ordinance","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/cabinet-approves-construction-sector-relief-package-ordinance.html","title":{"rendered":"Construction Sector Relief Package Ordinance approved"},"content":{"rendered":"\n<p>Islamabad: The Federal Cabinet on Friday approved amendments to the Income Tax Ordinance, 2001 for immediate implementation of its recently announced <a href=\"https:\/\/www.zameen.com\/news\/construction-sector-relief-package-withholding-tax-on-building-materials-abolished-stamp-duty-reduced.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Construction Sector Relief Package (opens in a new tab)\">Construction Sector Relief Package<\/a>, according to news sources. <\/p>\n\n\n\n<p>Under this ordinance, the construction sector, as well as\nits related businesses, industries and investors, are expected to reap the\nfollowing benefits:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fixed tax regime <\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"http:\/\/Under this Ordinance that may be termed as the Tax Law (Amendment) Ordinance 2020 construction sector, related businesses and industries, and investors will reap following benefits\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Fixed tax (opens in a new tab)\">Fixed tax<\/a> to be implemented on \u2018per square yard\u2019 and \u2018per square feet\u2019 bases on real estate projects,<\/li><li>Withholding tax waived off on building materials \u2013 except cement and steel,<\/li><li>Builders and developers to receive 10 times more profit-credit with respect to the taxes they pay,<\/li><li>Tax percentage on low-cost projects initiated under the Naya Pakistan Housing Programme (NPHP) to be dropped by 90%,<\/li><li>Offered tax cuts and relief provisions to be applicable on projects registered under the relief package and launched before December 31, 2020, as well as those currently underway; with the further criteria: <ul><li>Builders are required to get their new and current projects registered with the Federal Board of Revenue (FBR) via its IRIS portal,<\/li><li>Builders are required to inform the authorities regarding their project completions\u2019 status; along with being bound to pay taxes as per the new regime for any pending development work.<\/li><\/ul><\/li><li>The dividends issued by the companies concerned to their shareholders are to be exempted from these taxes.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Exemption on declaring source(s) of\nincome<\/strong><\/h3>\n\n\n\n<p>Section 111 of the Income Tax Ordinance (concerned with declaring\nthe sources of income) will not be applicable on investments made in the\nsector; to be further determined by investors\u2019 adherence to the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cash investments stacked in a new bank account\nbefore December 31, 2020<\/li><li>In case of investment in form of land, the said\nproperty has to be registered in the owners\u2019 name prior to introduction of this\nordinance<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>One-time exemption on Capital Gain\nTax<\/strong><\/h3>\n\n\n\n<p>The relief package waives the imposition of Capital Gain Tax\n(Tax) on the sale of personal property if:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The house is smaller than 500 square yards,<\/li><li>The flat (in the other case) area is under 4,000\nsquare feet<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Advance Tax on property<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The Advance Tax on property sales has been\nreduced to 5% from the previous 10%.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Construction sector given \u2018Industry\u2019\nstatus<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>With the construction sector\u2019s new \u2018Industry\u2019\nstatus affixation, the government will offer sector stakeholders the same\nfacilities it extends to the parties concerned hailing from other industries \u2013\nnarrowly, on the import of machinery required for carrying out construction and\ndevelopment work.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Amendment in Sales Tax rules<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Following the model introduced by the Punjab\ngovernment, the Federal Government has cancelled the Sales Tax due on\nconstruction services.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>CVT and Stamp Duty applicability in\nthe Federal Capital<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The same rules notified by the Governments of\nPunjab and Khyber Pakhtunkhwa for the collection of CVT and Stamp Duty will now\nbe applicable in Islamabad.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who cannot avail these offered\nconstruction sector \u2018relief\u2019 provisions?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Public office holders, their spouse and\ndependents, <\/li><li>Listed public companies and real estate\ninvestment trusts,<\/li><li>Parties deploying and in possession of income\nearned through illegal means such as money laundering, extortion and terror\nfinancing.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Islamabad: The Federal Cabinet on Friday approved amendments to the Income Tax Ordinance, 2001 for immediate implementation of its recently announced Construction Sector Relief Package, according to news sources. Under this ordinance, the construction sector, as well as its related businesses, industries and investors, are expected to reap the following benefits: Fixed tax regime Fixed tax to be implemented on \u2018per square yard\u2019 and \u2018per square feet\u2019 bases on real estate projects, Withholding tax waived off on building materials \u2013 except cement and steel, Builders and developers to receive 10 times more profit-credit with respect to the taxes they pay, Tax percentage on low-cost projects initiated under the Naya Pakistan Housing Programme (NPHP) to be dropped by 90%, Offered tax cuts and relief provisions to be applicable on projects registered under the relief package and launched before December 31, 2020, as well as those currently underway; with the further criteria: Builders are required to get their new and current projects registered with the Federal Board of Revenue (FBR) via its IRIS portal, Builders are required to inform the authorities regarding their project completions\u2019 status; along with being bound to pay taxes as per the new regime for any pending development&hellip;<\/p>\n","protected":false},"author":18,"featured_media":64102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15013,20385,15015,15017],"tags":[25417,26633,15023],"persona":[],"class_list":{"0":"post-64264","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-construction","8":"category-development-projects","9":"category-legal-taxation","10":"category-notices-announcements","11":"tag-construction-sector-relief-package","12":"tag-relief-package-for-construction-sector","13":"tag-slider","14":"cat-15013-id","15":"cat-20385-id","16":"cat-15015-id","17":"cat-15017-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Construction Sector Relief Package Ordinance approved - Zameen News<\/title>\n<meta name=\"description\" content=\"Islamabad: The Federal Cabinet on Friday approved amendments to the Income Tax Ordinance, 2001 for immediate implementation of its recently announced\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/cabinet-approves-construction-sector-relief-package-ordinance.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction Sector Relief Package Ordinance approved - Zameen News\" \/>\n<meta property=\"og:description\" content=\"Islamabad: The Federal Cabinet on Friday approved amendments to the Income Tax Ordinance, 2001 for immediate implementation of its recently announced\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/news\/cabinet-approves-construction-sector-relief-package-ordinance.html\" \/>\n<meta property=\"og:site_name\" content=\"Pakistan Real Estate News &amp; 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