The Govt of Pakistan announced relief for real estate and construction industries in the Budget for the year 2020-21. The government in this budget has reduced taxes and allocated funds for giving a boost to construction and allied industries. The spokesperson of Govt said it is an attempt to revive the economic growth in the country and it will create job opportunities.
The government announced relief for the following:
- The FED on cement has been reduced from Rs2 per kg to Rs1.75 per kg.
- Reducing rates on capital gains emanating from disposal of immovable property.
- There will be no tax on the income emanating from the immovable property if the buyer sells it after four years from the date of purchase. The maximum duration for availing tax exemption is being reduced to four years from eight years
- Rate of capital gains tax (CGT) on the sale of property will be reduced by 25% each year.
- The government will not ask the source of income spent on construction (by builders and developers). The fixed tax on sale by the builders and up to 90% reduction in taxes on the purchase of home by the low-income people will continue in year 2021
- Provided a subsidy of Rs30-billion to the Naya Pakistan Housing Authority to provide houses at lower prices to the people falling in the low-income category