ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government is contemplating the possibility of allowing investments in construction projects without questioning the source of equity.
The construction sector, in a downward trend, seeks policies for revival. The initiative is likely to attract large investments and help revive the ailing construction sector, but the prospect of black money finding its way into the sector is a legitimate concern.
The government has also finalised a proposal to provide tax reliefs such as cutting tax liabilities by 90% for builders and developers on income earned from low-cost housing schemes under the Naya Pakistan Housing Authority.
The Federal Board of Revenue (FBR) has also planned to offer major concessions on account of the source of equity investment, exemption from income tax computer ballot audit and production of record exemption, according to draft rules that the FBR may release soon.
However, the FBR will add safeguards regarding certain sections of Income Tax Ordinance that deal with unexplained income, computer ballot audit and production of record through the specialised regime.
Other major concessions will be revealed in the draft soon. These concessions are aimed to invite investments which had been previously withheld due to the government’s strict policies on the source of income and Benami assets.