The federal government yielded off 5% general sales tax (GST) on numerous property and construction amenities in order to promote sovereignty for the construction sector in Islamabad Capital Territory (ICT).

This GST abdication will implement on sales worth PKR 50 million annually and it will be handed over to property developers, promoters, and retailers in order to enhance the aura of construction in ICT.  

All the minimal-cost projects associated with Pakistan Development Authority (PDA) will also be authorized to this waiver. However, all the builders, retailers, and promoters that are benefiting from the waivers won’t be permitted to file tax alterations or refund claims.

Federal Board of Revenue (FBR) has altered the ICT ordinance 2001. Under this alteration, all the revenue generated from the construction projects worth PKR 50 Million including all the projects that are industrial in nature has been exempted from GST. Likewise, all the property dealers, promoters, and developers have also been exempted from the GST. 

FBR officials and the Government of Pakistan are hopeful that this initiative will get a huge success for the construction sector in the upcoming days. In return, the economy of the country will get a lucrative approach. In a nutshell, these types of remunerations from the Government of Pakistan are eliminating all the setbacks and in return creating thousands of job opportunities throughout the country.  Thus, all the advancements in the construction industry will cater to 70 industries like steel, cement, paint, hardware, plumbing, electrical wiring and equipment, and home appliances.