Federal Board of Revenue has stated that the response of builders, developers, and taxpayers on the construction industry package announced by the Government is very encouraging.
So far, 40 projects have already been registered with the FBR, whereas 4812 projects have prepared drafts for registration in the IRIS System.
Furthermore, one purchaser has also submitted a declaration to FBR whereas 279 purchasers have prepared drafts in the IRIS System. The response from the business community is highly encouraging and demonstrates people’s confidence in the Prime Minister’s vision and initiative of giving a boost to the construction and housing sector, that shall, in turn, translate in giving a significant jump to the economy.
The Federal Government, in an effort to ensure all possible facilitation for builders and developers desirous of availing the fixed tax scheme, has taken various special initiatives. Tax benefit scheme given by the government offers a lucrative package to both builders & developers and the public at large who are planning to buy plots and new housing units.
Subject to fulfillment of certain conditions in law, FBR shall not question the source of funds of builders, developers, and purchasers of housing units and plots. Besides that, builders and developers falling under the scheme can avail the benefit of payment of fixed tax as delineated in the Income Tax Ordinance, 2001.
As a part of this effort, FBR created an online project registration system in May 2020 for the maximum facilitation of taxpayers. Additionally, online support has also been made available through setting up of a dedicated web-page, step-by-step guide and video tutorials, a dedicated email address to facilitate correspondence between the Policy Wing of FBR and builders and developers seeking assistance, and a list of comprehensive FAQs answering queries received from various quarters.
Moreover, an aggressive media campaign to date has been launched since June 2020 in order to inform and educate the general public.
In a bid to augment facilitation efforts, FBR arranged a Webinar in July 2020 with around 500 attendees. The FBR team was led by the Chairman FBR while the NAPHDA team was headed by the Deputy Chairman NAPHDA. The session included a presentation conducted by FBR representatives on the key features of the scheme and the registration process. The presentation was followed by a detailed Q&A session.