ISLAMABAD: The government has announced a general amnesty for regularizing undeclared incomes within Pakistan at the tax rate of five percent.
According to draft ordinance, the amnesty will be extended to every resident company, resident association of persons and all citizens of Pakistan wherever they may be except holders of public office.
The ordinance provides for regularization of all undeclared incomes earned before June 30, 2017 on all local assets (gold, bonds, property) on a payment of 5 percent.
It further said that property valuation of Federal Board of Revenue (FBR) on property would be abolished and provinces will be requested to abolish DC rates.
The other salient features include:
– No purchase possible for non-filers of tax returns of property over Rs. 4 million
– CNIC to be the tax number
Reduced tax incidence:
- Maximum 1 percent tax (local &Provincial) for registration of property being recommended
- At Federal level Advance Income Tax being reduced to 1 percent – adjustable
The draft law said that the federal government to have power to buy individual properties anywhere in Pakistan within six months of registration for:
- 100 percent more for properties registered in FY 2018-19
- 75 percent more for properties registered in FY 2019-20
- 50 percent more for properties registered in FY 2020-21 & thereafter
