Govt releases Rs100 bn to industry in tax refunds
ISLAMABAD: Adviser to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh has said the government had released 100 billion rupees to industry in tax refunds under the stimulus package of 1,240 billion rupees announced by the prime minister.
Abdul Hafeez Shaikh termed it as an unprecedented step taken by the government to support business and employment in difficult times.
All tax refunds as of Mar 31 have now been cleared and the payments made include 52 billion rupees in GST refunds to industry other than export, 10 billion rupees for export industry and 15 billion rupees in duty draw back payments.
Prime Minister Imran Khan has announced an incentivized package for the construction industry in order to increase employment opportunities in the country in the wake of coronavirus outbreak.
Announcing the package in Islamabad on Apr 3, he said those who invested in the sector will not be asked questions about their source of income.
The prime minister said fixed tax will be introduced in construction sector and if the investor invests in construction projects under Naya Pakistan Housing Authority, ninety percent fixed tax will be removed and he will have to pay only ten percent tax.
He said withholding tax on construction will be lifted from all sectors, except steel and cement. Imran Khan said sales tax is also being brought down in coordination with the provinces. The Prime Minister said there will be no capital gain tax for a family that sells its house.
He said a subsidy of thirty billion rupees is being given to Naya Pakistan Housing project to spur the construction activities.
The Prime Minister said a Construction Industry Development Board is also being set up to promote the construction industry.
Imran Khan said a unified national response will help address the challenge of COVID-19 pandemic.
He said work in construction sector will start from 14th of this month.