FBR is extending an amnesty scheme

FBR is Extending an Amnesty Scheme for The Construction Industry

FBR is extending an amnesty scheme

The Federal Board of Revenue (FBR) is considering the option to extend the amnesty scheme for another six months, according to a news source.

As per the officials of the board, FBR has received proposals to extend the deadline for income source probe exemption of investments made in the property sector, from June 30 to December 31, 2021.

The construction industry relief package that Prime Minister Imran Khan announced in April 2020  in a bid to provide support to the construction industry and the numerous sectors aligned with it brought along a positive impact. The move was considered inevitable to stop the national economy from declining further during the post-Covid-19-outbreak period.

Construction Project in Amnesty Scheme

As per the latest statistics shared by the FBR, a total of 1,083 construction projects with an accumulative worth of 340 billion have already been registered under the amnesty scheme package. At the same time, developers of another 292 projects are in the queue to get these benefits. The FBR further revealed that by May 6, approximately 3,850 buyers had expressed an interest to purchase properties by availing of the construction industry relief package.

Under the extension announced by the PM on December 31, 2020, which he termed as the ‘New Year’s Gift’ for the construction industry, the fixed tax regime was extended till December 31, 2021. At the same time, he extended the deadline for the registration of real estate projects with the FBR till September 30, 2023, while the exemption for disclosing investments for buyers was extended till March 31, 2023.

Investment Scheme

Most of these deadlines, except for the one regarding disclosure of the source of income that is being invested in real estate projects, don’t expire anytime soon. This single condition is believed to be the most decisive factor that has triggered investment activity in the property sector. So for the investment streak to continue, legal and tax experts have recommended the government extend this deadline.

Sources have confirmed that the final decision in this regard will be announced during the budget 2021-22 speech that’s expected during the first week of June.

The Federal Board of Revenue (FBR) has announced that as many as 1,083 construction projects of an accumulated worth of PKR 340 billion have been registered under the government’s amnesty package for the construction industry (announced by Prime Minister Imran Khan in April 2020), according to news sources.

As a bonus for the construction sector, the non-disclosure of income source facility was extended by the government till June 2021 and the amnesty scheme till December 2021  to avail the fixed tax regimes. However, as per the official sources, given the International Monetary Fund’s (IMF)’s requirements, another extension in the non-disclosure of income source facility for the buyers is unlikely.

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FBR is extending an amnesty scheme

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