Prime Minister Imran Khan on Friday announced tax amnesty scheme for construction sector.
Granting immunity from Section 111 of Income Tax Ordinance, 2001 is an amnesty, senior tax officials at Federal Board of Revenue (FBR) said. This section of the ordinance deals with unexplained income or assets. This section is powerful tool against concealed or black money.
The PTI government has limited the scope of its second amnesty scheme in ten months to only wealthy this time. The immunity from declaring source of income will be available only to builders and developers of the housing societies and projects and this has not been extended to building own homes.
Prime Minister Imran Khan on April 03, 2020 announced a package for construction industry and said: “those investing in the construction sector during the year 2020, would not be asked any queries about the source of their income.
The Medium Term Budget Strategy Paper 2020/2023 also pointed out eliminating the final tax regime. “Gradual phasing out of Final Tax Regime will help in taxing real income,” it added.
Currently, the government charges 5% to 20% capital gains tax on sale of constructed assets and open plots. The tax amnesty has been given as part of the Prime Minister Package to lessen impacts of infectious novel coronavirus outbreak on the construction sector.
