No Script Javascript is disabled. Please enable it for better working experience.
Advertisement
Monday 08 July, 2024
Advertisement

10% Tax Relief Proposed on Construction and Property Sector in Budget 2023-24

BY Faizan Ahmed Jun 09, 2023. 06:18 pm

Advertisement

The government has made the decision to offer incentives to builders and persons engaged in the construction of new homes and buildings in light of the significant role that the construction industry and related businesses play in the economic development of the nation.

For the following three years, the government has planned to grant builders a tax break of 10%, or Rs. 5 million, on their company income.

Individuals will also receive a similar incentive; they will receive a tax break of 10%, or Rs. 1 million, for the following three years. Construction projects beginning after July 1, 2023, will be eligible for the tax exemption.

The government had instituted a reduced rate of taxation to support the small and medium-sized businesses (SMEs), agriculture, and construction industries.

In contrast to the regular rate of 39 percent, the revenue earned by banks from loans made to certain sectors was to be taxed at a favorable rate of 20 percent.

The administration has suggested extending this program for a further two years, or until 2025, as the reduced tax rate was set to expire this year.

Special Tax Regime for Land Developers

Land developers would be subject to scheduler taxes just like banks or insurance companies. Businesses involved in land development will be taxed separately and on a project-basis under a unique schedule.

The recommended minimum tax rate under Section 113 (Turnover Tax) is 5 percent of turnover. The standard tax rate that applies to people, AOPs, and businesses is 1.25%. It is suggested to use Project Advance Tax.

Advertisement

When a Layout Plan (LoP) is originally approved, the approving authority will collect advance income tax at a rate of 7.5% of the land’s fair market value at FBR Table value, which will then be adjusted three years later to predict future annual income tax liabilities.

 

Advertisement

Related Articles

Coldwave to hit Pakistan after Oct 17
Latest

Coldwave to hit Pakistan after Oct 17

According to the Pakistan Meteorological Department (PMD) on Thursday, a cold wave...

Maryam Nawaz's son Junaid Safdar divorce Ayesha
Latest

Maryam Nawaz's son Junaid Safdar divorce Ayesha

Junaid Safdar, the son of Pakistan Muslim League-Nawaz (PML-N) Maryam Nawaz, announced...

Who is Kathy Leutner? Sidney Crosby’s girlfriend
Latest

Who is Kathy Leutner? Sidney Crosby’s girlfriend

PITTSBURGH Sidney Crosby, a standout for the Penguins and one of the...

Petrol Price in Pakistan reduced by Rs. 8 from 1st October
Latest

Petrol Price in Pakistan reduced by Rs. 8 from 1st October

After three large increases in the previous fortnightly reviews, the caretaker government...

Punjab Announces Holiday for Schools on 28 September 2023 Amid Pink Eye Outbreak
Latest

Punjab Announces Holiday for Schools on 28 September 2023 Amid Pink Eye Outbreak

Due to an increase in pink eye (conjunctivitis) instances, Punjab's temporary Chief...

Who was Maddy Cusack?
Latest

Who was Maddy Cusack?

THE world has been shocked by the news that Sheffield United star...

Advertisement

Latest News

Linda De Sousa Abreu arrested for allegedly filmed having intimate relation with inmate in prison
US

Linda De Sousa Abreu arrested for allegedly filmed having intimate relation with inmate in prison

In the UK, a female prison guard faces charges after it was...

Farah El Kadhi Dead at 36, Cause of Death
Viral

Farah El Kadhi Dead at 36, Cause of Death

Local reports state that a well-known beauty influencer from Tunisia passed away...

Morgan Metzer beaten, bound, raped and nearly choked to death
US

Morgan Metzer beaten, bound, raped and nearly choked to death

A mother of two who was assaulted, restrained, sexually assaulted, and on...

James Everett du Bois, US Army vet swept out to sea
US

James Everett du Bois, US Army vet swept out to sea

Pictured is a US army veteran who was washed out to sea...

Advertisement