Karachi, April 06, 2018 (PPI-OT): FPCCI has been taking up the issue of Tax Amnesty Scheme for the last several years. We appreciate the measures taken by the government by introducing a comprehensive scheme which will not only bring a change in the life of individuals, specially a salaried class, white collar workers, but will also hopefully, will revamp the economic structure of the country and would bring in much needed stability.
Pakistan has suffered from the flight of the capital from the country because of various factors and this resulted in a huge stock of assets of Pakistani national abroad, while the country suffered from the cash flow. The reduction for the tax will help in increasing the number of tax payers and also being relief to the middle and salaried class. Introduction of CNIC numbers as NTN number is a bold step and will help in documenting the economy.
The tax of 2% on repatriation of money from abroad will help to increase the foreign reserve which are depleting. This is the lowest rate so far of all the schemes of similar nature and therefore, will encourage a large number of people to bring back their cash from abroad. 5% Tax on declaration of assets held abroad and locally will also encourage people to legalize these assets and the money invested in non-productive sectors will be invested into more productive sectors in the economy.
FPCCI urges the government to give legal and constitutional guarantees and a comprehensive protection package to all the beneficiaries of this scheme against the harassment or questioning by different agencies in future. The investment and foreign exchange bonds is also a positive step towards bringing the idle foreign exchange deposited in the banks to be utilized for the productive sectors of the economy.
However, the recommendations of Assets Repatriated Ordinance there lacks clarity as at present remittances less than $ 100,000 will continue without any questions from any agency about the source and enjoy tax exemptions. However the remittances greater than $ 100,000 will enjoy tax exemption but FBR can question the source, which is contradictory. FPCCI strongly suggest that the government should get this amnesty scheme endorsed by the Parliament so that the beneficiaries can have more confidence in declaring their cash and assets.
For more information, contact:
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: +92-21-35873691, 93-94