ISLAMABAD: Over 1,070 construction projects worth investment of Rs383 billion including both existing and new projects have been registered with the Federal Board of Revenue (FBR) under the prime minister’s incentive package for the construction sector.
According to the latest data of the FBR, this is a very huge quantum of investment projects worth Rs383 billion under the construction package.
The FBR has already released the names of projects of developers and builders registered with the FBR under the prime minister’s incentive package for the construction sector.
The FBR had uploaded the names and complete addresses of the names of individuals, companies, and firms registered under Section 100D of the Income Tax Ordinance, 2001, who availed the PM’s incentive package.
These construction projects that have so far been registered with the FBR are reportedly worth Rs383 billion.
The package was promulgated through Tax Laws (Amendment) Ordinance, 2020 whereby a new section 100D and Eleventh Schedule were inserted in Income Tax Ordinance 2001.
The construction package of the prime minister is very vast in scope and offers handsomely attractive tax incentives.
The package is applicable to both the builders and developers of the land, and covers both the new and existing construction and development projects. Builders and developers can avail the tax benefits of the package in respect of residential as well as commercial buildings.
This can be availed by individuals, association of persons and companies, irrespective of the entity status.
It provides for fixed tax rates on per square foot and per square yard basis for builders and developers respectively.
The tax, so calculated is reduced by 90 percent in cases of low-cost housing projects.
Moreover, to facilitate the shareholders of limited companies, the dividend income of the shareholders has been made tax free.
The PM package for construction also provides for many concessions from withholding taxes.
In order to mobilise investment, a complete immunity from probe regarding the sources of investment has been provided to the builders/developers and to the buyers of the properties of such projects subject to fulfillment of certain conditions.
The requirements for availing the package are pretty simple.
Every builder and developer is required to register on computer-based IRIS Software of the FBR on or before 31.12.2020, and the projects are required to be completed before 30.09.2022.
The requirements for registration include provision of bank account, ownership documents and approved plan.
The FBR System also provides for temporary registration pending completion of approvals.
In order to facilitate builders, developers and buyers, the FBR has established online support setup, this includes a banner on the front page of official website, dedicated web page, dedicated email to address queries and online step-by-step guidelines has also been uploaded.
Moreover, the queries of stakeholders have been addressed and till date 57 frequently asked questions (FAQs) have been responded and uploaded on website.
The PM Package has been well advertised both on print and electronic media, and many webinars have been conducted jointly by the FBR and the NAPHDA.
Many seminars with the associations of builders, developers, and real estate agents have been conducted.
Copyright Business Recorder, 2021