April 15, 2020 (MLN): Pakistan government has prepared the ordinance for construction sector today, which will be approved by President of Pakistan as the National Assembly has not been in session.
Under this draft ordinance, people or public office holders which already availed tax amnesty in 2018 would not be entitled to utilise this package.
As per the ordinance, persons selling their home would be exempted from the capital gains tax, whereas, those selling plot or home of more than 500 square yards will have to pay capital gains tax.
Furthermore, Capital gains tax will not be exempted on selling flat of more than 4000 sq ft.
The draft ordinance will be applied to those who would purchase land before December 31, 2020, and they will be bound to complete construction activity before September 30, 2022.
Moreover, builders and developers who are non-filers will not be entitled to benefit from the ordinance.
In order to benefit from the ordinance, builders and developers have to file wealth tax statement online within 60 days. They will also have to give details of the area and buildings.
Builders and developers, who would take advantage of the ordinance will have to submit 25% of income tax.
In addition to this, builders of Pakistan Housing Scheme will also be entitled to benefit from this Ordinance.
Builders in Naya Pakistan Housing Authority, Naya Pakistan Scheme shopping centre, shops and other business houses would not be exempted.
