Lahore: Federal Minister for Industries and Production Hammad Azhar, during his Budget 2020-21 speech on Friday (June 12), stated that the government had decided to reduce the taxes applicable on the construction of low-cost houses, according to news sources.
The decision had been made to meet the housing shortfall in the country and to provide deserving individuals with affordable residential units under Prime Minister Imran Khan’s flagship Naya Pakistan Housing Program (NPHP).
In this regard, the government has reserved funds worth PKR 30 billion to be offered in terms of subsidies to the Naya Pakistan Housing Authority. The subsidy will help the authority provide affordable residential units to people belonging to low-income communities.
The government has already reduced the taxes applicable on investments made in affordable housing schemes falling under the auspices of the NPHP by 90%. The Tax Law Ordinance 2020, which was approved in mid-April, stated that this condition is applicable on all projects launched before December 31, 2020, as well as the low-cost housing schemes registered with the Naya Pakistan Housing Authority.
In addition, the government has allocated PKR 1.5 billion to the Akhuwat Foundation. The foundation will use these funds to offer Qarz-e-Hasna to low-income individuals for the construction of these low-cost houses.
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