ISLAMABAD: Builders and developers are demanding the government to remove some difficulties they were facing in availing the PM’s Amnesty Scheme for Construction Sector such as getting No Objection Certificate from respective development authorities. Besides they are also seeking extension in the amnesty scheme so that they can benefit from it fully.
When The News asked about any possible extension in the package deadline, Special Assistant to the PM on Revenue Dr Waqar Masood said nothing in this regard was clear so far.
The deadline for benefiting from the amnesty scheme is December 31. So far, 348 persons have registered 389 projects with the total estimated cost of Rs157 billion. Meanwhile, a press statement issued by the FBR said the FBR and Naya Pakistan Housing Development Authority like to remind the public at large and construction sector investors that the construction package for builders and developers was in full swing.
The package is applicable to both the land builders and developers covering new and existing construction and development projects. The builders and developers can avail themselves of tax benefits in respect of residential as well as commercial buildings. This can be availed by individuals and association of persons and companies, irrespective of the entity status.
It provides for fixed tax rates on a per square foot and per square yard basis. The tax so calculated is reduced by 90% in cases of low cost housing projects. Moreover, to facilitate the shareholders of limited companies, the dividend income of the shareholders has been made tax-free.
The package also carries many concessions from withholding taxes. In order to mobilize investment, complete immunity from probes regarding the sources of investment has been provided to the builders/developers and to buyers of the properties of such projects subject to fulfillment of certain conditions.
The requirements for availing the package are pretty simple. Every builder and developer is required to register on computer based IRIS Software of the FBR on or before 31.12.2020 and the projects are required to be completed before 30.09.2022.
The requirements for registration include provision of bank account, ownership documents and approved plan. The FBR system also provides for temporary registration pending completion of approvals. In order to facilitate builders, developers and buyers, the FBR has established an online support setup. This includes a banner on the front page of official website, dedicated web page, and dedicated email to address queries.
Online step-by-step guidelines have also been uploaded. Moreover, the queries of stakeholders have been addressed and to date 57 frequently asked questions (FAQs) have been responded to and uploaded on the website.