Islamabad: Federal Industries and Production Minister Hammad Azhar has presented the budget proposal for fiscal year (FY) 2020-21, and amid the economic contraction caused by the coronavirus pandemic – the government has decided to not impose new taxes, according to news sources.
For the real estate and construction sector, the minister announced that the period for withholding tax on sale of immovable property has been reduced from five years to four years. Additionally, the federal excise duty on cement per kilogram is proposed to be slashed from PKR 2 to PKR 1.75. Under the Section 236-A, advance tax is to be collected at the time of property auction. The tax for such transactions is proposed to be paid in instalments – provided that the payment of such properties is already divided to be payable in instalments. Furthermore, PKR 30 billion has been allocated for the Naya Pakistan Housing Scheme (NPHP) in the new budget proposal.
Azhar said the government is focused on relaxing laws to provide relief to the taxpayers. As for the Computerised National Identification Card (CNIC) condition, the government has extended the purchase limit from PKR 50,000 to PKR 100,000 to facilitate traders. The retail tax for those retailers who are registered with the Federal Board of Revenue’s Point of Sale (POS) system might be offered a decreased tax rate of 12%, the minister announced.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
