Although previous governments had introduced tax amnesty schemes several times before and the results have not been particularly encouraging. They have not really solved the basic problem, which is that our taxpayer base has to be substantially increased. Such schemes are very ad hoc.
Like previous governments, PTI government, in a session of the federal cabinet chaired by the Prime Minister in Islamabad on Tuesday (May 14) approved a tax amnesty scheme and gave a golden chance to all citizens of Pakistan to declare previously undisclosed assets inside and outside the country by paying just four percent taxes on all assets other than real estate.
The Prime Minister’s Adviser on Finance Hafeez Sheikh, while addressing a press conference, said that the objective of the amnesty scheme was not revenue generation but formalisation and documentation of the black economy.
“We have tried our best to make this scheme as simple as possible so people do not have problems understanding it and implementation is seamless,” he said. “The philosophy is not to threaten or intimidate people but to encourage businessmen.” He said that every Pakistani citizen — except for public office holders and their dependents — could avail this scheme to declare all previously undisclosed assets either abroad or in Pakistan.
Giving a briefing, Special Assistant to Prime Minister on Information and Broadcasting Dr. Firdous Ashiq Awan said the cabinet was informed that billions of rupees were spent in international litigations from national exchequer that increased from 6 in 2016 to 45 this year. She said 100 million dollars as fee has been paid during the last five years while 10 million dollars are to be paid this month in international legal fees.
The amnesty scheme recommends the following:
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26 May, 2019