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Rs380b black money turned into white under FBR’s amnesty scheme

Rs380b black money turned into white under FBR’s amnesty scheme

LAHORE: Under Amnesty Scheme announced by the last government of Pakistan Muslim League-Nawaz (PML-N), around Rs380 billion of black money is turned into white and at least Rs435 billion will also be legalized in near future.

Official FBR sources revealed that a renowned businessman also declared his Rs 15 billion in recent past, while on the other hand after the announcement of Supreme Court of Pakistan that the court will not interfere in the issue of Amnesty Scheme, there is marginable increase being witnessed in turning the black money into white.

Sources said that during the last few days Rs250 billion turned into legal money.

Economic experts believe that this Amnesty Scheme will put a positive impact on the national economy, while it will also pave way for a documented economy. Sources told that FBR will generate Rs 100 billion extra revenue through this Amnesty Scheme.

In April 2018, the government introduced the tax amnesty scheme through which people with undeclared income earned before June 30, 2017, on assets within the country would be able to bring them in the tax net by simply paying a five per cent penalty.

Moreover, people who hold undocumented assets outside the country will also be able to declare their assets under the new amnesty scheme. Meanwhile, foreign exchange could be brought back to the country by paying a 2 per cent penalty as well.

Under the scheme fixed assets would incur a 3 per cent penalty, to be evaluated at the market value of the asset, which cannot be less than the cost of its acquisition.

Foreign liquid assets like cash, securities and bonds held abroad and in local dollar accounts would be declared with a 5 per cent penalty.

Dollar account holders in Pakistan who have purchased dollars with undeclared funds can also regularise their funds by paying a 2 per cent penalty.

Further, all remittances less than $100,000 per year per person will continue without any questions from any agency regarding the source of funds and enjoy tax exemption. All remittances greater than that amount will enjoy tax exemption but may be scrutinised by the FBR under the new scheme. Furthermore, any new foreign exchange accounts can now only be opened by tax filers.

People who take part in the amnesty scheme will enjoy exemption from scrutiny, however, politically exposed persons and their families will not be able to avail the amnesty scheme, former prime minister Shahid Khaqan Abbasi stated while announcing the scheme.