ISLAMABAD – President Mamnoon Hussain approved an ordinance on Sundaybringing into effect the tax amnesty scheme recently announced by ShahidKhaqan Abbasi-led government.
The ordinance would formally implement the five-point tax reforms packagewhich included a tax amnesty scheme for undeclared foreign and domesticassets, and reduction in income tax rates.
The prime minister launched the amnesty scheme and reforms package onThursday in a bid to boost government’s revenue base at a time when theruling regime falls has merely around 52 days before the next elections areheld.
According to the new scheme, which is being decried by PML-N’s politicalrivals, the Computerized National Identity Card (CNIC) number will be usedas the income tax number in the future and public falling in up to100,000-rupee salary bracket will not be taxed.
Those earning over Rs48million annually will be liable to pay 15 percenttax on their income, according to the scheme, while cash assets abroadcould be brought back by paying a two-percent penalty.
Abbasi announced a tax amnesty scheme for nonpayers, however, clarifiedthat politically exposed persons (PEPs) and their families were noteligible to benefit from the scheme. The amnesty scheme is valid till June30.
Following are main points of the tax amnesty scheme:
– Income up to Rs0.1m per month not taxable – 10%tax on annual income between Rs2.4-4.8m – 15% tax on annual income above Rs4.8m – CNIC to be used as income tax number – Cash assets abroad can be brought back on payment of 2% penalty – Foreign assets, which will be brought back, can be declared at lower rates – Forex accounts within Pakistan will become visible to FBR – No one without NTN can open forex account – Anyone receiving remittance over $100,000 in a year shall have to explain source