ISLAMABAD: The Pakistan Tehreek-i-Insaf (PTI) government has prepared a draft for its first tax amnesty scheme, which it aims to extend to December 31, 2019 and launch during the much-anticipated International Monetary Fund (IMF) programme.
According to sources, Finance Adviser to Prime Minister Dr Abdul Hafeez Shaikh has ordered Federal Board of Revenue (FBR) officials to ensure that people can easily comprehend the ‘Asset Declaration Scheme’.
According to sources, a tax rate of 5 percent will be applied on individuals declaring their undeclared assets by June 30, 2019; 10% on individuals declaring assets by September 30, 2019; while 20 percent tax will be applied on individuals declaring assets by December 31, 2019.
The draft also proposes amnesty for the real estate sector. It proposes 1 percent tax on individuals declaring their property by June 30, 2019; 2 percent on individuals declaring property by September 30, 2019; and 4 percent tax on individuals declaring property by December 31, 2019.
The draft contains a proposal to charge 3 percent tax on previously undeclared sales, while the scheme will also apply on benami bank accounts. The government hopes to bring the scheme into effect through a presidential ordinance.
However, the fate of the government’s first tax amnesty scheme largely depends on the IMF. The government is expected to discuss the details of the proposed scheme with the IMF team, which will arrive in Islamabad later this month.
The FBR is currently working out further details of the scheme, which the government hopes to launch during the IMF programme—if the Fund allows its duration to be extended during the bailout programme.