ISLAMABAD – According to Moody’s, Tax amnesty scheme is the country’sfirst tax amnesty scheme which is directed at overseas assets, whichaccording to AF Ferguson projections stands at $150 billion.

Moody’s, the credit rating agency on Thursday in its assessment of the taxamnesty scheme said its benefits may not last beyond June 2018.

It stated if the scheme became successful, it could help raise thegovernment’s revenue base and reduce pressure on the fiscal front.

The credit rating agency said repatriation of liquid foreign assets backinto Pakistan would help improve the balance-of-payments pressure in theremaining months of the current financial year 2017-18.

Under this tax amnesty scheme till end of June 2018, Pakistani nationalscan repatriate “undeclared local liquid assets with a 5% penalty,undeclared foreign liquid assets with a 2% penalty (if repatriated, or a 5%penalty if remaining abroad or in foreign currencies), and undeclared fixedassets – whether held locally or abroad – with a 3% penalty. The lowpenalty rates, particularly for repatriated assets, increase the likelihoodof the scheme’s success,” read the report.

Its analysis said widening the tax base by the inclusion of previouslyundeclared assets would assist in decreasing Pakistan’s existing fiscalcrisis.