Tax Amnesty

President issues the ordinance ratifying tax amnesty scheme

On Sunday president gave the go-ahead to a new tax amnesty announced by the prime
minister last week to encourage Pakistanis to declare their undeclared assets in the
country and abroad.

President issued 4 ordinances

 Voluntary declaration of domestic assets ordinances 2018

 Foreign assets(declaration and repatriation) ordinances 2018
 Income tax (amendment) ordinance 2018
 Economic reforms (amendment) ordinance 2018

To implement the economic reforms package (ERP).

On April 05, Prime Minister Shahid Khaqan Abbasi announced a 5 point tax reforms
package envisaging substantial scheme for undeclared foreign and domestic assets.

According to the scheme, 120 million national identity cardholder will be assigned tax
numbers in the future.

TAX AMNESTY SCHEME

Under the scheme, all Pakistan will be able to declare their undeclared assets and bring
their money into the tax not after paying a five-percent one-off penalty.

Pakistanis living overseas and declaring their income or assets would pay a two percent
one-time penalty.

Those earning more than Rs48 million annually will be liable to pay 15% tax on their
income, according to the scheme.

The government has given a long list of people who can avail the amnesty scheme,
including presidents, prime ministers, ministers, governors, chief minister’s councilors,
Nazism, government consultants and judges of the higher and lowers courts.

THE AMNESTY SCHEME IS VALID TILL JUNE 30.

It remains to be seen whether the tax amnesty scheme will achieve its objective or not
as some economist believe the tax amnesty will be of little help as those declaring
undeclared assets will have no protection from the law enforcement, which might ask
them the source of their income and subject them to accountability.
The opposition parties, mainly Pakistan people’s party (PPP) and Pakistan tehreen-i-
lnsaf (PTI), have strongly rejected the tax amnesty scheme, terming it a ploy to fool
taxpayers and whiten black money.

CHANGES IN THE INDIVIDUAL TAX RATES

 UPTO 1,200,000 0%
 1,200,000—2,400,000 5%
 2,400,000—4,800,000 10%
 4,800,000& ABOVE 15%