Imran’s amnesty scheme hopes to pull in Rs250bn in tax

–PM accords approval to new amnesty scheme which will be announced on April 15

–‘Benami’ accounts, assets holders to be offered up to 10% tax to whiten money

ISLAMABAD: With the approval of Prime Minister Imran Khan, the federal government is all set to announce another amnesty scheme on April 15, in a bid to facilitate benami accounts or assets holders to whiten their money, hoping to generate around Rs250 billion revenue.

The amnesty scheme – which will be initially launched for 45 days through a presidential ordinance – will be discussed in the federal cabinet’s meeting on Tuesday.

“Since the decision has been made about the asset declaration scheme, we will be sharing details of the new scheme next week,” said Finance Minister Asad Umar while addressing the launching of ‘Medium Term Economic Framework’ here on Monday.

According to an official, the new amnesty scheme is expected to generate around Rs250 billion revenue, unlike the Rs150 billion generated through the previous scheme which was launched by the previous PML-N government.

UP TO 10% TAX OFFER:

The government is expected to give a chance to ‘benami’ accounts or assets holders to whiten their money by up to 10% tax offer in the new amnesty scheme which will end on June 30, 2019.

All companies and individuals except holders of public office since 1/1/2000, their spouses, children, brother and sisters or lineal ascendant or descendant; proceeds derived from commission of a criminal offence; and cases pending before a court of law with the exception of older pending litigation will be eligible to benefit from the scheme.

Sources told Pakistan Today that the incumbent government has learnt some lessons from the last amnesty scheme as 3,344 people repatriated and invested in the government securities. Similarly, under the liquid assets repatriated, 6,428 people whitened their money by paying just 2 per cent.

In the last scheme, filers and non-filers were 5,625 and 570 respectively, and they paid Rs47 billion. Moreover, sources further said that the government has also evaluated that people prefer to keep money outside the country while local money was used primarily for money whitening.

The foreign amnesty scheme declarations showed 25% declarations in immovable properties (UAE, UK, Canada).

The last amnesty scheme, according to sources, did not lead to a higher number of tax returns or higher tax payments for return of the tax year 2018 and undisclosed properties and bank accounts remained undisclosed. The new policies of FBR have been prepared keeping in view these points and the government is hoping to double the tax revenue through the new scheme, sources added.