THE massive package announced by Prime Minister Imran Khan earlier this month for the construction industry was finally given legal cover through an ordinance on Friday, paving the way for the builders and developers to avail the incentives and exemptions in taxes.
In the present circumstances when novel Coronavirus is taking a heavy toll not only humans but also economy due to lockdown situation, it was important to open up the industries and sectors that entail less danger of spreading the contagious virus so that the labourers and workers could get the opportunity to earn livelihood for their families. Hence, in our view, the package for the construction industry is very important and timely as this sector alone has the potential to trigger immense economic activity in the country for generation of sufficient job opportunities for hundreds of thousands of unskilled, semi-skilled and skilled workforce. Importantly, the incentive package has also fulfilled the longstanding demand of the builders for fixed income tax and declaration of construction as an industry. With the declaration of it as an industry, the import of plants and machinery used in this sector would have the same incentives as enjoyed by other industries. There are also some critics of this package who say that this will provide an opportunity to the people to whiten their black money. Indeed Prime Minister Imran Khan has always adopted a strict stance and unwavering stance against corruption and before coming to power he was a staunch opponent of giving tax amnesties. However, currently the country is passing through an extraordinary situation and such situations warrant extraordinary decisions. Instead of raising fingers on the package, one must appreciate the spirit of the Prime Minister who is striving to strike a right kind of balance in lockdown and the economic activity to protect the low income groups from these testing times. Hitherto, the government has ignored the construction of road infrastructure projects but now is the time for it to immediately start work on road and transport projects as it will encourage private builders to come forward in a big manner. This will go a long way in uplifting the economy.
