The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to consider introducing a one-time tax amnesty scheme for Pakistanis who have stashed their money in foreign lands to bring back their undeclared wealth and after payment of a nominal amount of tax become an active part of the formal economy.
Islamabad Chamber of Commerce and Industry Acting President Sheikh Pervez Ahmed said that many wealthy Pakistanis have kept their billions of dollars abroad due to various reasons and offering one-time tax amnesty scheme would incentivise them to bring their undeclared foreign wealth to their home country. He said that with such an incentive, repatriated capital of billions of dollars will enter Pakistan’s financial system and boost economic activities in the country.
He said that Pakistan needs a lot of capital to fund infrastructure and other developmental projects, but with low tax-to-GDP ratio, the country is unable to generate enough tax revenue to enhance spending on health, education, social sector and development projects. This situation is increasing the country’s reliance on foreign borrowings, which is not good for its economic future. He was of the view that one-time amnesty will facilitate inflow of a huge amount of foreign assets/capital into the country that will help in accelerating economic growth in Pakistan.
Sheikh Pervez Ahmed said that Indonesia has also passed a tax amnesty law to give multi-billion dollar boost to its economy as it believes that the amnesty will bring in billions of dollars in additional revenue by offering low tax rates to those who wish to come forward to declare their untaxed wealth kept in foreign lands. He said that Pakistan can also benefit by introducing a one-time tax amnesty scheme for its citizens because such a scheme will enable them to bring their assets/cash back to their homeland and play a more active role in the economic development of the country.
