Prominent economists, experts and associations had hailed the concessional package, announced by the government, for construction industry through amendments in the Income Tax Ordinance (2001) to provide tax relaxation to the builders and developers in the existing COVID-19 pandemic situation.
“In the current COVID-19 pandemic situation, when whole global economy is in recession, the government has taken good steps to open construction industry by providing it concessions and tax relations,” Executive Director, SDPI, Islamabad and member Prime Minister’s Economic Advisory Council and member National Advisory Committee of Planning Commission of Pakistan Dr. Abid Suleri told APP here.
He said that he could see long term effects of this pragmatic decision and said that in recent situation, it would uplift investments in property and construction sector and re-open huge potential for new investmen.
t He said that ultimate impact of these tax relaxations would leave good impact on the construction industry, which not only open up opportunities but also activate the circle of 70 others allied industries.
He, however, said that in the current situation, there was need to ensure transport and labour availability for the construction industry while safety of labour force at work place could also be a challenging task.
Sulari said that this was takeoff time for construction industry, hence needed a comprehensive strategy to get more benefits from this government tax relief package.
Vice Chancellor of Pakistan Institute of Development Economic (PIDE), Dr. Nadeem ul Haque also lauded the current tax relaxation to the construction industry and said this would promote market liberalization in this sector. The market regulation and liberalization would help promote growth in construction industry, he said, adding that this would give opportunity to the new investment and job opportunity in this sector.
The VC, PIDE said that the construction industry needed more tax liberalization to compete to other competitor in region and create more employment opportunity in country’s economy. He said that construction of high rise building and other big projects would also promote growth and investment.
Renowned economic and Former Chairman Baluchistan board of Investment, Dr Kaiser Bengali, said that this ordinance would not only help recover old investment but also provide new employment opportunities in the country. He said that small housing scheme for middle class would be better option to get benefits from this tax relation given by the government and also expected growth in country’s economy. He said that the government also provided finance flexibility to the low income people for building their own houses.
While representing the construction industry, Chairman Association of Builder and Developers Mohsin Seikhani lauded the government’s package for construction industry and said that government had already declared the sector as an industry as it had huge demand of up to 70 associated industries. He said that now the construction sector acquired the status of industry which would add the positive impact in country’s economic health, also enhance economic growth.—APP