As per the recent COVID-19 outbreak is concerned, the thought process of the people changed in the entire country.  In order to save the economy of Pakistan from this pandemic, the Government of Pakistan made some amendments to the ordinance. Prime Minister Imran Khan declared a historic relief package on 3^rd April 2020 for the construction sector in order to mitigate all the effects of Coronavirus in the economic conditions of Pakistan. The main motive of this Historic Package is to strengthen the labors and the families associated with them.

Construction Relief Package:

Federal Cabinet on April 17, 2020 approved an ordinance for the Construction Sector. Here are some of the valuable highlights that are going to be discussed:

• Investors will not be liable to declare the income they invest in a property in 2020; In short, they will not be answerable for their Invested Income.
• There will be a fixed tax imposed on the construction sector. There will be no rise and fall of the prescribed tax. The Estate Developer will pay the tax per square foot/yard.
• There will be no additional/ withholding tax for the construction sector except steel and cement sectors.
• The dividends paid to shareholders by Builders and Developers for taxation will be exempted under this scheme.
• The Capital Gain Tax for 500 yards house and 4000 foot flat will be exempted.  
• Investors who are enrolled in the Naya Pakistan construction project will get an added dominance of a 90% tax waiver.  
• Construction got equal importance as compared to Industry.
• A Construction Industry Development board will be created to cater all the queries related to Construction Industry.
• All the Builders and Developers have to deposit the income to their respective accounts till 31st December 2020.
• Builders and Developers have to complete the projects up to Grey Structure until September 2022.
• This ordinance could also be implemented on current unfinished projects that will be registered in this scheme.
• This Scheme will never comply with Listed Companies and Real Estate Investment Trust.
• Public office-holders, their sleeping partners, spouse or relatives as well as criminal proceeds derived from money laundering, extortion and terror financing are exempted from this scheme.
• Sales tax for construction in Islamabad became zero similar to Punjab.
• Similar to Punjab and KPK, Islamabad is also exempted from Capital Value Tax.
• Final verdict will be made for Sindh after the mutual discussion between Sindh Government and Naya Pakistan Housing Scheme. They are keeping in touch with the Sindh Government for the final settlement.