With only six days remaining for the federal government to present the next budget for the financial year (FY) 2022, builders and developers are expecting an extension in the amnesty scheme for the construction sector.
The term of the amnesty scheme for the construction sector is going to expire on June 30 this year.
The construction sector is the flagship project of the prime minister and the amnesty scheme will allow people to invest in the realm without disclosing the source of income.
Moreover, the scheme was applicable on the projects that were under construction under the condition that all the new and ongoing projects are required to be completed by September 30, 2022.
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So far, some 1,083 projects worth Rs 340 billion are registered with the Federal Board of Revenue (FBR) under the prime minister’s package for the construction industry.
According to sources, the federal government has issued special instructions to the revenue body.
FBR sources claimed that the federal government introduced an amnesty scheme for the construction sector during the fiscal year 2020-21.
With the consent of the International Monetary Fund (IMF), the scheme could be extended to September or December 2021, FBR sources said.
Moreover, IMF had already relieved the government on several other tax initiatives due to the outbreak of covid-19 and officials are now waiting for the final decision by the government.
In this regard, the chairman of the Association of Builders and Developers (ABAD) requested the government to grant an extension in the construction amnesty scheme.
The extension will enable people to avail the package, who could not avail due to coronavirus pandemic and delays in projects’ approvals.
According to sources, the budget for the next financial year 2021-22 will be around Rs 8,000 billion.
The budget has allocated Rs 900 billion for development schemes and about Rs 1,400 billion for the defense, whereas, the development budget of the provinces are allocated at Rs. 1000 billion.
The next financial year’s budget deficit is expected to increase by 5 to 6 percent to Rs 2,915 billion.