Existing construction alert set to push most employment and economic viewpoint.

• Author: Ahmed, Khalil
• Position: Muhammad Talha - Interview

Byline: Khalil Ahmed

Interview with Muhammad Talha - an analyst

PAGE: Tell me something about yourself, please:

Muhammad Talha: I have been working in Arif Habib Group for last 12 years. Before joining the Arif Habib Group Company, I served in Al-Abbas Group, Ghulam Farooq Group and EY Ford Rhodes and gained experience in diversified sectors serving clients spanning the financial, manufacturing and real estate sectors. I have a working experience of more than 20 years in various diversified capacities. My current engagements include the overall set up and management of a state-of-the-art Gymkhana, Health, Education, Sports facilities and Islamic Center at Naya Nazimabad, Karachi.

PAGE: Has the government taken the right steps for the construction sector?

Muhammad Talha: The current government has given the top priority to construction sector and for this purpose, this sector has been given the status of industry. The idea behind it is the generation of maximum employment and increase in GDP as more than 50 industries are connected with construction sector. One of the incentives provided in the scheme is that no question would be raised with respect to the investment made by the individual. This will help to bring the black money/undocumented money in the market, which will help raise the employment along with documented economy.

Beside this following are some key incentives:

* Withholding Tax on construction industry lifted from all sectors, except steel and cement

* No Capital Gain Tax for family house sale

* Fixed Tax Rates for construction sector - charges per square foot or square yard.

* Investment in construction projects under "Naya Pakistan Housing Authority", 90% fixed tax will be waived and only pay 10% tax

* Rs 30 billion subsidy to Naya Pakistan Housing Projects for stimulating construction activities.

* Reduction of Sales Tax for construction industry in coordination with the provinces.

* Rate of Tax reduced proportionate to the increase in FBR Valuation Table.

* Capital Gain Tax (CGT) holding period for constructed property reduced from 4 years to 3 years (as was the case prior to 2019).

* CGT holding period for real estate/plots may remain eight years, however, the Rate of Tax may be significantly reduced on sliding scale from fourth year onward.

* The investment made by any person on purchase of land and constructing any structure (house, commercial building etc.) will be exempted from provisions of Section 111 of the Income...