Federal Cabinet has approved an ordinance giving legal effect to incentive package for the construction industry.
Under the ordinance, a fixed tax regime introduced for builders and developers.
According to the package there will be no withholding tax on the constructional material except cement and steel.
Provision of services has exempted from withholding tax.
Tax has been reduced by ninety percent for low cost houses to be constructed under Naya Pakistan Housing Authority.
This incentive package will applicable for the projects to initiated before the end this year as well as the ongoing incomplete projects, which will get themselves registered under this scheme.
The builders and developers will have to get their new and ongoing projects with Federal Board of Revenue through IRIS web portal.
One time exemption given on capital gain tax for the house measuring 500 square yards and flat of 4000 square yards.
Furthermore the construction industry will eligible to avail the same kind of facilities available to other industries for the import of plant and machinery.
Advance tax on auction of properties reduced to five percent from 10 percent.
Sales tax on construction services in the federal capital territory brought to zero on the pattern of Punjab. Exemption has also given on capital value tax in the federal capital territory on the pattern of Punjab and Khyber Pakhtunkhwa provinces.