— Delegation also asks the government to extend the date of completion of projects under 100 C and 100 D
ISLAMABAD: With the federal budget around the corner everyone is out worried for their fate in the coming year.
The finance ministry has tried to mitigate the market sentiment time and again but the market, by and large, is trying its best to protect its own interests, with or without the government’s help.
In a similar attempt to protect their bottom line, the Association of Builders and Developers of Pakistan (ABAD) has asked Federal Minister for Finance Ishaq Dar for removal of the existing 30 % regulatory duty on import of steel bars in next year’s budget.
According to the Finance ministry, A delegation of ABAD called on Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar at FBR on Budget 2023-24 proposals.
The delegates from ABAD apprised the Finance Minister of the challenges being currently faced by the construction industry and presented their proposals for the upcoming Federal Budget. The delegation also assured to support the Government in its efforts for overcoming the economic challenges and to boost the economic and business activities in the country.
According to details, ABAD in its budget proposals requested the Finance minister for removal of the existing 30 % regulatory duty on import of steel bars for revival of the construction industry.
They informed that due to the imposition of regulatory duty the cartel of large scale steel manufacturers are having undue advantage and have jacked up steel bar prices to Rs 300,000 per metric ton.
ABAD also asked the government to extend the date of completion of projects under 100 C and 100 D. The completion dates of projects under the above sections are 30th September, 2023. However due to prevailing difficult economic conditions which has resulted in a 200 % increase in the price of construction material and an increase in bank borrowing cost, the construction activities have slowed down to a great extent. Resultantly it has become almost impossible to complete the projects before 30 September 2023.
ABAD also asked the federal government to remove double taxation on projects registered under section 100C and 100D.
They also asked to be charged 10% Capital gain tax if the property is sold within 1 year, 8% if sold within 2 years, 6% If sold within 3 years, 2% If sold within 4 years and zero percent If sold after 5 years.
Finance Minister Senator Mohammad Ishaq Dar appreciated the proposals presented by the delegation and assured them that the government is taking concrete steps to overcome the economic challenges and for strengthening the economy of the country.
He further reiterated that the Government will try to provide a business friendly budget in order to support the masses and for the economic progress and development in the country. The delegation thanked the Finance Minister for considering their budget proposals.
