ISLAMABAD: The government has promulgated the presidential ordinance for Prime Minister’s tax amnesty scheme.
The four ordinances promulgated by President Mamnoon Hussain are: Voluntary Declaration of Domestic Assets Ordinance 2018, Foreign Assets (Declaration and Repatriation) Ordinance 2018, Income Tax (Amendment) Ordinance 2018, and Economic Reforms (amendment) Ordinance 2018.
The ordinances have been issued under the Protection of Economic Reforms 2018.
In the tax amnesty, revelation of dollar account will make it legal after paying five percent tax.
Moreover, foreign currency and assets or offshore company can be whiten after paying two and three percent tax respectively.
The citizens can also legalize their foreign currency account after paying two percent tax whereas other assets can be whiten while disbursing five percent tax.
If the value of assets is revealed less, the government will be able to buy it after paying double and the applicable DC rate will eliminate.
Two of the ordinances have been applied immediately.
It is pertinent to mention here that no political figure including Nawaz Sharif and family will benefit from the scheme. Moreover, the holders of public office from January 2000 will also be deprived from the scheme.
Those who will take the amnesty will have complete security from NAB, FBR and FIA.
The Income Tax Ordinance 2018 will be applied from July 2018. No tax will be applicable on Rs12 lac annual income whereas five percent tax will be valid on Rs12-24 lac income.
The percentage of tax on annual income worth Rs24-48 will be 10 and will also pay Rs60,000 in extra.
Moreover, 15 percent tax will be applicable on annual Rs48 lac income with extra payable amount of Rs80 lac.