Recently, federal cabinet has approved a scheme of tax amnesty that allows Pakistani to declare undisclosed property as proposal to mention high earners for tax collection. The adviser of Prime Minister ‘Hafeez Sheikh’ has announced this scheme with approval. It was approved by federal cabinet on 14th May.
He has described the actual purpose of this scheme is that this is not only generating the revenue however this is for formalization of black money and then documentation. He also added that they’ve make it simple as possible so users don’t have problems to know about implementations which is seamless. This is announced not to threaten people or scare then it is for ingraining spirit level in business class people.
Every Pakistani citizen excluding public office holders and their families – can avail it to declare hidden properties in Pakistan and in abroad. A public can use it to undeclared assets abroad after paying tax of 4%. As per scheme, a citizen shows cash and saves in bank account. A citizen wants to keep money abroad once it’s whitened to pay tax of 6%. For real estate sector, a new situation is introduced in this scheme that showing a property, the value on tax would be charged as per market value, given that it’s greater than 1.5 times the FBR assigned value.
Tax amnesty scheme with recommendations
· 1% tax for declaring property in June 30, 2019
· 2% tax for declaring property in Sept 30, 2019
· 4% tax for declaring property in Dec 31, 2019
Duration of new amnesty Scheme
Pakistan Tax Amnesty scheme 2019 is also offered till 30th June 2019. But the final stage of this scheme will be end in 31st Dec, 2019. It’s clear that Govt. has given deadline to their citizens and last chance for them to show their undisclosed assets and use as per laws. A new tax scheme also facilitates the nameless accounts or declaring properties or assets with new laws. This is also good and last chance for avoiders who can submit their property and use it.
Tax Amnesty Scheme-2019
· 5% tax for people showing assets in 30th June , 2019
· 10% tax for people showing assets in 30th Sep , 2019
· 20% tax for people showing assets in 31st Dec , 2019
· 30% tax for people showing assets in 31st Mar , 2019
· 40% tax for people showing assets individually in 30th June , 2020
· If you’ve invested then you will get ‘banao certificate’ for this abroad.
· 1% tax for people showing assets in 30th June , 2019
· 2% tax for people showing assets in 30th Sep , 2019
· This is also valid for nameless accounts
· 3% tax on undeclared sales
· Individuals holding positions in 2000, can’t avail it.
· Tax Amnesty scheme-2019 is not applicable in court.
Shabbar Zaidi – FBR says that Pakistan Government is not concentrating to increase the net tax for economy improvement. It is good to mention that this scheme is one of best and biggest attempt for increasing the revenue which is based in Pakistan. You can take taxes as per population.