The federal government has decided to introduce a fixed tax regime for the construction industry, according to the Federal Board of Revenue.
According to a draft of the scheme seen by SAMAA TV, construction companies will have to be registered with the FBR.
The government will decide the tax rate after consultation with all the stake-holders. However, there will be separate rates for the construction of residential and commercial buildings per square foot.
Under the new scheme, the rate of fixed tax will be increased yearly. The draft will be presented before the Economic Coordination Committee for approval this month.
The federal government also intends to provide up to 90% tax exemption to real estate companies investing in the Naya Pakistan Housing Scheme.