F.P. Report
ISLAMABAD: Prime Minister Imran Khan Friday announced the opening of construction sector from April 14 to help the country’s daily wagers and laborers, affected by continued lockdown due to COVID-19 outbreak, to earn their livelihoods.
Talking to media-persons, he said the government’s decision taken in coordination with the provinces, was also aimed at reviving economic activities in the country, badly hit by the situation arising out of the Coronavirus outbreak.
The Prime Minister also announced various incentives for the construction sector including tax incentives, waivers and subsidies in the areas of sales tax, capital gain tax, withholding tax etc.
Giving details of the decisions, he said that those investing in the construction sector during the year 2020, would not be asked any queries about the source of their income.
Secondly, the Prime Minister said, the government had also decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land would be levied on the basis of per square yard and per foot.
He, however, added that those investing in the prime minister’s housing programme would be given 90% tax rebate and they would be required to pay just 10% of the total calculated tax amount on their projects.
The Prime Minister said that it has also been decided to waive-off withholding in cement and steel sectors.
Besides, he said, that in coordination with the provincial governments of Punjab, Khyber Pakhtoonkhwa and Sindh, it has also been decided to bring the sales tax in construction sector to 2% through consolidation of all taxes.
The Prime Minister further said that Capital Gain Tax on the sale of house was also being done away with. He also announced Rs. 30 billion subsidy for Naya Pakistan Housing Programme, adding, further subsidy would be given on its progress.
The Prime Minister said the government has also decided to give construction sector the status of industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the construction industry in the country, he added.
The Prime Minister said all the decisions regarding the COVID-19 were being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.
He said since the Rs. 1200 billion’s stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak, the government had decided to open the construction sector.
The Prime Minister said with the agriculture sector, which was already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, was very much needed.
Prime Minister Imran Khan reiterated the stance of not full lockdown in cities as both the Covid-19 and hunger was a challenge for the nation and said the government could not confine its around 220 million population to their homes. “We are daily deliberating on how to confront coronavirus besides creating activities for the daily wagers and low income people – who are being adversely affected due the virus,” he added.
He said in case a complete lockdown was implemented, the situation in one month would be so adverse that it may result in casualties from hunger. He said whole nation will have to demonstrate utmost responsibility to observe social distancing to contain further spread the virus as police may not be able to control them with force. He said the whole nation would surely defeat the pandemic with unison and unity. He said the entire world was worried to confront coronavirus as the lockdown had badly affected their economies and daily life, adding even world advanced economies including the US, were not unanimous on complete lockdown.
To a question, the prime minister said the objective of the PM’s Corona Relief Fund was to assist the needy and down-trodden segments of the society in this critical time.
He said the fund had received ten million SMSs and after scrutiny of 8 to 10 million people, around four million requests were being processed and these people would get their cheques within two to three days.
The prime minister said the government had already earmarked Rs 150 billion for the daily wagers and low-income groups in the hefty Rs 1200 billion relief package but that amount was not sufficient and that was why the PM’s Corona Relief Fund was set up. He assured that the entire process would be free from political affiliation and only deserving people would get the relief.
He said unfortunately 80 percent labour in Pakistan was not registered and that was why the government was facing difficulty in their registration. He, however, said the people would get relief shortly from the data of Ehsaas programme.
He said that until job opportunities were not created it was almost impossible for the state to reach out to all people, adding Pakistani nation would come out of this crisis with unity as it had proved it in the 2005 earthquake and 2010 floods.
