Builders and developers can save around six times on taxes if they register under the Prime Minister’s construction package as it has a fixed regime.
“This saving on tax will add up to whatever profit you make,” explained the FBR’s Abdul Hafeez while addressing them at a seminar on the ‘PM’s Package on Naya Pakistan Housing Scheme’ at the Association of Builders and Developers House October 7. Abdul Hafeez is the Commissioner for Inland Revenue Audit at the FBR. FBR MTO Chief Commissioner Abdul Hameed Memon and ABAD members attended.
People can also whiten their “legally earned” money under thepackage as they will not be asked for a money trail. But money earned illegallyor received through bribes cannot be laundered through this process.
The FBR has defined new projects as those for which work began duringthe period starting from April 17, 2020 and ends December 31, 2020 or iscompleted on or before September 30, 2022. Existing projects are defined as thosethat started before April 17, 2020 but are incomplete. They should also becompleted by September 30, 2022.
Low-cost housing projects developed by Naya Pakistan Housing andDevelopment Authority will be charged almost 90% lower taxes.
ABAD chairman Fayyaz Ilyas asked the government to extend the dateof the scheme by a year.