Saturday , October 20 2018
Breaking News
Home / Business / Constructors demand tax exemption in budget
Constructors demand tax exemption in budget
Construction site crane building a blue 3D text. Part of a series.

Constructors demand tax exemption in budget

LAHORE: The Constructors Association of Pakistan (CAP) called for exempting the import of construction equipment, machinery and formworks system, including plywood for formwork, from advance sales tax of 17 per cent and additional sales tax of 3 per cent.

CAP Chairman Kamal Nasir Khan made this demand in the budget proposals for year 2018-19 submitted to the Federal Board of Revenue (FBR). He said that the construction sector played a major role in the economic development and uplift of a country because it was an important employment generating industry which offered job opportunities to millions of skilled and un-skilled labour forces, he added.

He said that construction was declared an industry by the government in 1999 but it was not given the status of industry over the years. Consequently, the SMEs could not develop and major construction projects were being executed by foreign companies at much higher rates.

To enhance the capacity of the local industry, induction of latest and good condition construction machinery and equipment was the foremost requirement.

Submitting budget proposals in his letter, Nasir said that to enable the construction industry to import construction equipment, machinery and formwork systems, including plywood for formwork, should be exempted from the levy of advance sales tax and additional sales tax. This exemption should only be granted for an initial period of 3 years to enable the capacity enhancement of the local construction industry, he added.