Prime Minister Khan tried to cement the Economy with Construction Package:
- Fixed Tax Regime for Builders & Developers: No Withholding Tax on building materials except Cement, Steel & other services.
- Fixed Tax Regime for Builders & Developers: No Withholding Tax on building materials except Cement, Steel & other services.
- Moreover, imputing income equal to 10x the tax paid under this regime is allowed in declaring net wealth
- No Source of Income : Exemption till June 2022 on purchase of land & constructing any structure on already owned, or first purchase of newly constructed, property.
- No Source of Income : Exemption till June 2022 on purchase of land & constructing any structure on already owned, or first purchase of newly constructed, property.
- Ease of Business: Approval time to be reduced to ~45 days by introducing one-window operation
- Cheaper Financing: 7% interest rate for Greenfield Projects in low-cost housing along with ~6% interest rate for 100,000 low-cost houses on Mortgage
- Cheaper Financing: 7% interest rate for Greenfield Projects in low-cost housing along with ~6% interest rate for 100,000 low-cost houses on Mortgage
- Capital Gain Taxes: To be fall proportionally with increase in valuation rates. Holding period reduced from 4 to 3 years for constructed property. On real estate/plots CGT may remain for 8 years with a cascading sliding rate after 4th Year.
- Other Taxes: Sales tax & Excise duty imposed on Building Materials would be reduced. Importantly, purchase/sale of first house will be exempted from all taxes, including CGT.
It seems IMF/FATF would approve amnesty in hope Pakistan repays the debt already owed to it. A job creating arrow. Positivity resurfaces. Trying to cure the impact of COVID 19. Markets rejoicing.
#psx #pakistan @ImranKhanPTI @Asad_Umar @ansukhera @razak_dawood @imf_pakistan
#psx #pakistan @ImranKhanPTI @Asad_Umar @ansukhera @razak_dawood @imf_pakistan
