*ISLAMABAD: *President Mamnoon Hussain on Sunday promulgated fourordinances to give effect to tax amnesty scheme for whitening of local andoffshore hidden assets, while for beneficiaries the government has notannounced immunity from prosecution under anti-corruption, anti-moneylaundering and counterterrorism financing laws.
The government, for the time being, backed out from the announcement oflowering property tax rates and acquiring the right of taking over theproperties by paying the owners higher than the declared prices.
Prime Minister Shahid Khaqan Abbasi had announced to acquire the right totake over property to discourage tax evasion and keep a check on the realtysector.
The government also did not lower the income tax rates for the Associationof Persons, which would still pay maximum 35% rates. However, individuals’income tax rates have been cut with effect from July, who will now payhighest rate of 15% plus a fixed tax for the two highest income slabs.
It appears that the Federal Board of Revenue tried to recoup some of thelosses that it sustained due to the prime minister’s decision to steeplycut the income tax and property tax rates.
The Financial Action Task Force’s objections to the amnesty scheme alsoforced the government to withhold the decision to give immunity fromprosecution under National Accountability Ordinance, Federal InvestigationAgency Act, Election Commission of Pakistan Act, Anti-Money Laundering Act,Anti-Terrorism Act and Anti-Smuggling Act.
The president promulgated Foreign Assets Declaration and RepatriationOrdinance 2018, Pakistan Economic Reforms Protection Act AmendmentOrdinance 2018, the Voluntary Declaration of Domestic Assets Ordinance 2018and Income Tax Amendment Ordinance 2018.
These ordinances will take effect from April 10 and the window to avail theschemes will close on June 30 this year.