Abb Takk News

PM Approves New Tax Amnesty Scheme

ISLAMABAD: Prime Minister Imran Khan has approved the first tax amnesty scheme of the Pakistan Tehreek-e-Insaf (PTI) led-federal government.

The decision was taken in a meeting chaired by Imran Khan in Islamabad after getting a briefing on the scheme finalised to provide people with the means to legitimise all kinds of offshore and onshore undeclared assets at the rates of five to 10 per cent.

The scheme will be tabled in the meeting of the federal cabinet today.

The new tax amnesty scheme also coincides with a new global anti-tax evasion scheme that is operational under a multilateral tax convention on the avoidance of double taxation and recommendations of Financial Action Task Force (FATF).

The scheme

Under the proposed scheme, the government will offer three slabs for declaring all kinds of assets, both offshore and onshore.

The proposed slabs were 5pc, 7.5pc and 10pc for whitening of the assets though they could be changed before cabinet approval, the source said.

Moreover, the rates will also vary in cases of repatriation of assets to Pakistan and in cases of non-repatriation of foreign assets. However, it is not yet clear whether the government would link the scheme with the repatriation of wealth.

Similarly, the benami properties, bank accounts, undeclared duty paid vehicles and jewellery will also be covered in the proposed scheme.

Under the proposed scheme, the government will bar all those holding any public office since the year 2000 from availing the tax amnesty scheme in an attempt to address concern that former heads of government and state can avail the assets whitening package.

The scheme is not meant to offer amnesty to public office holders who have pile up money through corruption and other illegal means.