President Mamnoon signs ordinance to bring amnesty scheme into effect

• Govt reportedly wants to enact the scheme before Senate session tomorrow 

President Mamnoon Hussain on Sunday signed the ordinance to enact the new tax amnesty scheme announced by the government earlier this week.

Earlier, it was feared that if the presidential order would not be issued on Sunday, then implementation of the scheme will become a difficult task due to Senate’s session on Monday. It was feared that Senate will shot down the scheme.

It was also stated that if the presidential order was not issued, then it will be hard to get the law passed by the Senate. A session of the upper house is expected to be held on Monday.

The finance ministry officials quoted by a local media outlet said there were some legislative flaws in the scheme; however, efforts were being made to correct them.

Moreover, the Federal Board of Revenue and Ministry of Finance were not united on the implementation of the scheme either.

On Thursday, Prime Minister Shahid Khaqan Abbasi announced a reduction in income tax rates along with an amnesty scheme aimed at broadening the government’s revenue base.

The premier had announced that all 120 million national identity card holders will be assigned tax numbers, adding: “If you will not pay taxes, Pakistan will not be stable.”

He, however, had mentioned that politically exposed persons (PEPs) and their families are not eligible to avail the scheme, valid till June 30.

On Friday, both opposition parties, Pakistan People’s Party (PPP) and Pakistan Tehreek-e-Insaf (PTI) rejected the amnesty scheme and tax reforms and announced that it would approach the court to challenge it.

PTI rejected the five-point amnesty scheme of government launched to whiten the ‘black money’ for Pakistanis living in the country and abroad.

Pakistan People’s Party (PPP) leader and former Senate chairman Raza Rabbani said that PPP would challenge the ruling government’s tax amnesty scheme in the parliament.

Speaking to reporters along with other PPP leaders in Karachi, he said that there was no need to approach courts to challenge the scheme when there was a pertinent forum for the cause in the shape of parliament.

The PPP senator termed the amnesty scheme a license to earn black money.