Karachi: The Sindh government has sought the Punjab government’s model of construction industry revival, a news source reported. In this regard, the Sindh Revenue Board (SRB) has made some requests to the federal government and the Federal Board of Revenue (FBR).
The SRB has made the following propositions for the construction industry revival:
Exempt cement, paints, riles, sanitary products
& fittings, and mild steel products from sales tax
Exempt imported construction machinery from
sales tax and customs duty
Exempt immovable property-related activities
from withholding tax, capital gains tax, and advance income tax
Abolishing FBR’s valuation tables pertaining to
immovable properties
In relation to adopting the Punjab government’s model of construction industry revival, SRB has requested the exemption of Sindh Sales Tax (SST) on construction services for a period of three months – until June 30. Furthermore, it has asked for continued implementation of SST on property developers at prescribed specific rates – PKR 50 per square yard of land and PKR 100 per square yard of constructed area.
SRB officials said that the exemption might be restricted to services of registered persons. A note issued on this matter states that this measure would allow for monitoring of extent of economic activity of construction and the cost of exemption.
SRB has also pointed out that the exemption on construction
services tariff would create a revenue loss of PKR 12 billion per annum – or
PKR 3 billion during the current quarter of the financial year 2019-20. The
authority indicated that if exemption of SST was allowed, the provincial
government might seek a compensation from the federal government through a
special grant to cover loss of revenue in Sindh.
Meanwhile, Karachi Chamber of Commerce & Industry (KCCI)
President Agha Shahab Ahmed Khan has asked the SRB to suspend the collection of
all types of taxes for the next four to six months. He said that this measure
would help support businesspersons and industrialists during these tough times.
