Islamabad: The Board of Investment (BoI) on Tuesday (November 2) organised a housing and construction seminar in Dubai to invite investors to explore the housing sector in Pakistan, according to media reports.
As per the details shared, it was disclosed in the seminar that the annual demand for housing in the country is around 700,000, however, only half of this demand is being met. BoI Secretary Fareena Mazhar encouraged investors to take advantage of the incentives, tremendous tax-based rebates under tax laws amendment ordinance 2020, and facilitation offered in project approvals through one-window operation under Naya Pakistan Housing and Development Authority (NAPHDA).
Sharing more details about the tax incentives, the secretary stated that eligible builders and developers will be exempted from withholding taxes on the purchase of building materials. It was also mentioned that any tax payable on the profits, income, and gains of projects of low-cost housing will be slashed by 90%.
Moreover, BoI Secretary Mazhar disclosed that the Income Tax Ordinance has been amended to declare the construction sector as an industrial undertaking to make it qualified for the benefits available for other sectors. She went on to say that for the promotion of the construction and housing sector in Pakistan, the State Bank of Pakistan has decided to advise mandatory targets for the banks. Under this initiative, every bank will make sure that the financing for the construction of buildings and housing must be at least 5% of their domestic private sector credit by December.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
