KP’s tax cuts may help revive construction industry from Covid slump

PESHAWAR: Senior officials at the Khyber Pakhtunkhwa (KP) Board of Revenue said on Monday that the provincial government has reduced taxes on the construction sector in order to revive the sector from the Covid-19 induced economic slowdown.

Syed Zafar Ali, a senior official at the KP Board of Revenue claimed that taxes on the construction industry have been slashed by as much as 80 per cent.

He said that four different types of taxes levied on the construction industry which include capital value added tax, registration fee, local government tax and stamp duty have been reduced from 6 per cent to 2 per cent.

He said that KP’s construction industry has been severely impacted due to Covid-19 and the tax cuts by the provincial government will help revive and bring additional investment into the sector. He added that the tax cuts will also help create employment opportunities in the province.

“The government’s job is not just to earn money but to provide more facilities and relief to the public. This step will revolutionise KP’s construction sector and also benefit other associated industries,” he said

Inam, a resident of KP who is associated with the construction industry, termed the tax exemption for the construction industry as a people-friendly decision by the provincial government.

He added that by reducing tax on the registration of property from 6 per cent to 2 per cent, the KP government will be able to attract more investment in the construction sector and also increase the total amount of tax it earns.

Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

1 COMMENT

  1. I wonder if they regulate the quality for instance anti earthquake and what not since Pakistan is a highly disastrous region. Australia is facing many damages and losses post construction boom.

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