Construction sector given tax incentives

Prime Minister Imran Khan has announced tax incentives for the construction sector, saying that this construction sector is being given the "status of industry". Moreover, its related industries would reopen from April 14 to provide employments to people.
The prime minister announced this decision during a media interaction. He said that the government has decided to form a Construction Industry Development Board with the objective to promote the industry.
The prime minister announced incentives for the construction sector. These include; (i) those who would invest in the industry this year would not be asked questions about the source of income; (ii) a fixed tax for construction sector is being introduced at per square feet; (iii) those who would pay less tax than 90 percent would be waived off, if they undertake construction for Naya Pakistan Housing Project (for low-income group); (iv) withholding tax on all materials and services for construction sector would be abolished except for steel and cement sector; (iv) sales tax are being reduced in coordination with the provinces, Punjab and Khyber-Pakhtunkhwa have agreed to reduce it to two percent; (v) those families selling their houses would not be charged capital gain tax (CGT), and; (vi) Rs30 billion subsidy would be given to the Naya Pakistan Housing Scheme.
The prime minister said that the government's primary objective is to provide employment to daily wagers because lockdown has affected them most. He said that the entire world is facing a similar situation.
The prime minister said that in rural areas agriculture sector and in the urban areas construction and its related industries are being allowed, so that the people (especially daily wagers and low income individuals) can be provided employment opportunities.
He added that agriculture and construction sector provide jobs to people, and the government has decided to open the agriculture sector as wheat harvest has matured in Sindh. "Food processing, transport for goods transportation and restaurants are opened for take-aways," he added.
The prime minister said that the provinces were given the reason for opening of the construction industry during the NCC meeting and everyone was ready, however, everyone's concern was how to strike a balance between combating coronavirus and ensuring employment for daily wagers and the poor.
This has been left to individual provinces to decide on this issue because the federal government does not want to direct provinces after the 18th Constitutional Amendment, he added.
The premier said that both coronavirus and poverty constitute a challenge to the country, adding that his fear was that people may die of hunger after the lockdown.
He added that the lockdown would succeed only if the government is able to provide food to "those living in slums. He added that the lockdown was successful in Wuhan for two months because the Chinese government provided food to its people at their doorsteps.
He further stated said that the government announced Rs1,200 billion relief package including Rs150 billion for 12 million poor people and 10 million have applied so far and may be in need of more money.
Four million people have been processed and payment would be transferred to them without any political discrimination through transparent system. The prime minister said that the delay was because daily wagers were working in the informal economy and it was hard to reach them in the absence of any data.
The prime minister said that the entire nation had to fight off this challenge because there was no guarantee what would be the situation in Pakistan with regard to coronavirus in the coming days and weeks because no one knows how much it would spread.
The prime minister also emphasized the people not to be misled by social media news that people of Pakistan were somehow less vulnerable to the coronavirus because of our better immune system, and termed "this thinking is very dangerous". He urged the people to follow the guidelines issued by health experts.