Government has taken effective measures to restore construction industry in new budget

Association of Builders and Developers (ABAD)

Abad’s budget proposals can lead to more investment in the construction sector in the country, Sage spoke to the delegation

Karachi, May 20, 2024: Arif Yousuf Jewa, former chairman of Association of Builders and Developers (ABAD) and a well-known investor in the construction sector, has said that the government needs to take effective measures to revive the construction industry in Pakistan, on behalf of Abad.

The government has been provided with suggestions for the federal budget for 2024-25, by following which not only more investment can be started in the construction sector in the country, but also wide employment opportunities can be available to the people. Arif Jewa, Council of Economic and Energy Journalists. While discussing the federal budget proposals for the year 2024-2025 at the dinner given in honor of the CEEJ delegation, he said that one of the steps that the federal government can take to revive the construction industry in Pakistan is an important proposal on the import of steel bars.

Abolition of existing 30% regulatory duty, HS Code 7215.10 Due to imposition of regulatory duty, cartel of large scale steel manufacturers have been unfairly benefited and they have increased the price of steel bar to Rs 270,000 per metric tonne. . As a result, 65 percent of all vertical construction projects in Pakistan have stalled. He said that no new projects are expected to be launched for some time, while during the Eid days, overseas Pakistanis are usually at home and investing in real estate and construction projects, with the removal of regulatory duties.

Not only will steel bar prices stabilize in Pakistan, it will also help the government of Pakistan to earn Rs 24 billion annual duty at Rs 80,000 per metric ton, which is currently zero due to the imposition of regulatory duty.

72 allied industries linked to the construction industry will also help survive in tough times and save millions of jobs. Arif Jewa said that due to the current difficult economic conditions and recession in the market and the huge increase in the prices of construction materials and the increase in the cost of borrowing from the bank, the construction activities have slowed down considerably, resulting in a large number of projects with all tax dues, have not been able to complete their gray structure and development works despite the payment of Rs., therefore, to avoid litigation and to protect the investment of the final allottees, the completion date under the said section may be extended to 30 September 2025.

Can Double taxation on projects registered under section 100C and 100D, final tax is calculated and paid by projects registered under the above sections which are full and final tax, this tax is not adjustable or refundable, this policy was greatly appreciated by the construction industry and resulted in a manifold increase in taxes from the sector.

However, in Budget 2022-23 tax under Section 236C was also levied on projects registered under Section 100c and 100d which is payable at the time of registration of sublease of the unit, this anomaly should be removed immediately as its The result is double taxation.

Arif Jewa added that no capital gains tax will be levied beyond 5 years of ownership and if the property is sold before 5 years of acquisition, it will be charged as follows, if within 1 year 10% if sold within 2 years 8% if sold within 3 years 6% if sold within 4 years 2% and if sold after 5 years 5% Tax under Section 7E Section 7E The deemed income tax levied under s. He demanded that the mortgage finance policy for home financing should be revived with an interest rate of 5% for first-time home owners up to 10 million and that the State Bank of Pakistan would give targets to banks to provide less for the construction sector. Advance at least 10%.

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