Cabinet waves taxes on services related to construction industry

ISLAMABAD, Apr 21 (APP):The Federal Cabinet on Tuesday decided to waive off various taxes on services relating to the construction industry.
Five percent tax was being charged to property dealers, property developers and other services related to the construction industry, which had been abolished, Special Assistant to the Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan said.
Briefing the media about the decisions taken by the cabinet, which met here under the chairmanship of Prime Minister Imran Khan, Dr Firdous said the tax on low cost housing units to be constructed under the Naya Pakistan Housing Project had also been made zero rated.
She said the zero tax incentive to the construction industry would help provide employment opportunities to the poor labourers and workers in 40 other industries related to the sector.
The tax exemption would protect rights of daily-wagers, plumbers, carpenters, developers and other stakeholders of the construction industry, she added.
The SAPM said the cabinet decided to make public the inquiry report regarding the agreements signed by the previous governments with Independent Power Producers (IPPs).
Dr Firdous said Prime Minister Imran Khan told the cabinet that the nation would simultaneously fight the coronavirus and the virus of corruption.
She quoted the prime minister as saying that there was no holy cow in the country and the Pakistan Tehreek-e-Insaf government would ensure that all involved in the corruption and illegal practices were taken to task.
She said the Chunian Power Plant was one of the IPP agreements, which was approved by Shehbaz Sharif as Punjab chief minister in favour of the company owned by his son Salman Shehbaz.
An independent commission of inquiry would be constituted to probe the issues pertaining to the IPPs, and its report and recommendations would be made public, she added.
The SAPM said the Federal Cabinet gave approval to the proposal of reforming and restructuring the Competition Commission of
Pakistan (CCP).
The objective behind the establishment of CCP, she said, was to discourage cartelization and monopolies, and take action against those indulging in such illegal practices. But unfortunately in the past, the CCP was used by the powerful mafia as a tool to protect their interests at the cost of the rights of poor people. The PM had decided to remove its chairperson but she got a stay order from the court.
The CCP would now be restructured with the use of modern technology and digitalization, she added.
Dr Firdous said the cabinet was informed that 27 petitions had been filed against the CCP and dues of Rs 27 billion were outstanding against powerful mill owners. Some cases had been pending for over a decade, and the elements in CCP were facilitating the powerful mafia in prolonging the
litigation process, she added.
She said the prime minister expressed his strong displeasure over the CCP’s state of affairs and reiterated his firm resolve to foil any attempts to damage the interests of masses for those of the influential people.
The cabinet also gave approval for filling the vacant vacancies of the appellate tribunal within a week.
It also approved abolishing a law of 1991 under which the government employees, who took retirement on completion of 30-year service, could keep the official accommodation till 60 years of age.
The cabinet gave approval to the proposal of restructuring the National Commission for Minorities with its chairman and majority of members to be nominated from the minority community
Dr Firdous said the minority community members played an important role in the national development process, and their rights were protected under the Constitution.
She said the prime minister issued directives to Minister for Energy Umar Ayub to present a restructuring and reformation plan of the power
sector to prevent line losses and power theft by digitalization of the system.
The cabinet, she said, also decided to offer IESCO and PESCO for privatization.
The SAPM said the cabinet gave approval for the export of Chloroquine tablets to Saudi Arabia, Turkey, the United States, Italy, Qatar,
Kazakhstan and the United Kingdom. The heads of many friendly countries had approached Prime Minister Imran Khan personally and sought approval for the export of the medicine, which was considered
effective against the coronavirus.
The decision was taken after thorough consideration of local needs as the cabinet was informed that the surplus stock of medicine was available, which could be exported for the benefit of friendly countries, she added.
The SAPM said the opposition leaders were issuing political statements at the time when the nation was fighting the coronavirus.
She said as the National Accountability Bureau summoned Pakistan Muslim
League-Nawaz President Shehbaz Sharif, his party leaders came out of self-isolation in a bid to protect him.
She said the PML-N leaders were more worried about the Sharif family than the problems being faced by the poor people due to the coronavirus pandemic and the lockdown.
She made it clear that no funds would be issued for Tiger Corona Force, whose volunteers would help the government in providing relief to the vulnerable segments of the society.