Cut in CVT to benefit building industry

KARACHI: The reduction in the rate of Capital Value Tax (CVT) from four to two per cent in the budget for 2010-11 will benefit the construction industry as well as common man, said Sindh Chief Minister Syed Qaim Ali Shah.

Shah was talking to a delegation of the Association of Builders and Developers (Abad), led by its Chairman Farooq-uz- Zaman Khan on Friday.

Shah said there is an opportunity and need for low-cost housing projects in the province, especially Karachi, adding the provincial government will put to use all available resources to meet this requirement.

Farooq-uz-Zaman Khan apprised the chief minister of issues faced by the construction industry and discussed the law and order problem. To this, the chief minister assured the delegation that the government will improve the security situation.

Shah said the provincial assembly has passed a law to deal sternly with criminals and unscrupulous elements involved in deteriorating the law and order situation and encroachment on land. “Instructions have been issued to enforce the law with full force,” he said.

The chief minister said Abad should have representation in the Citizens-Police Liaison Committee (CPLC) and other relevant institutions to help the government cope with the law and order challenge.

Referring to the Land Grant policy under which the provincial government provides cheap land to the builders for constructing low-cost houses, Shah said the country, specifically Sindh, is faced with an acute shortage of residential facilities, adding the government will take steps to bring those within the reach of common man.

He assured the builders that the government will provide all possible facilities to the departments related to the construction industry so that middle class and low-income people could get residential units at a low cost.

In this regard, adequate incentives have been given in the budget as well, he said.

He pointed out that the construction industry could play a very important role in the revival of economy and the government wants to encourage this sector.

Published in The Express Tribune, June 20^th, 2010.