Islamabad: PM Shahid Khaqan Abbasi has just announced amnesty and radical tax reforms for non filers. This move was made to widen the net of tax payers, making it easier for people to pay taxes, which include technology for catching non tax payers, reduction in taxes. The amnesty move was made to bring foreign money and assets back to the country to improve the finance situation of the nation. He said that if people who are eligible to pay taxes don’t do so, the government has to adjust by implementing taxes on different services on all the people which is not right.
PM Abbasi’s Tax Reforms
PM Abbasi has announced that the National Identity Card number will now be your tax number, means it is easier to pay taxes. He says they are using new means of technology to collect more taxes and old traditional ways of paying taxes will be discarded. Those people that will not pay taxes will face immediate government action. PM Khaqan Abbasi has also reduced tax substantiality, giving people with income up-to 1.2 million a year, tax exemption. For those people with income of up-to 2.4 million a year have to pay five percent, while those who earn up-to 4.8 million a year will pay 10 percent tax. By reducing taxes he hopes people will not evade tax payment.
One-Time Amnesty Scheme Also Announced By PM Abbasi
The Foreign Assets Declaration and Repatriation Ordinance issued by the government states that dollar account holders who purchased dollars through undeclared money can regularize on two-percent payment and declare foreign fixed assets on 3 percent payment. Foreign Liquid assets held abroad and in local dollar accounts may be declared at 5% payment.
All undeclared incomes earned before June 30, 2017 on local assets can be regularized on a payment of 5 percent penalty as well. “We have announced a one-time amnesty scheme for those who have evaded taxes. We believe that those who are citizens of Pakistan should be given the opportunity to whiten their assets. It will be a one-time penalty.”
PM said those who have assets abroad will pay two percent penalty to whiten their money. People will be able to take advantage of the amnesty scheme till June 1, 2018. All remittances greater than 100,000 a year per person will get tax exemptions.
He said that they have all the databases of people who pay bills, fees and go on trips, and they will be able to tell who has and who hasn’t paid tax. The new scheme will not be applicable to public office holders of Pakistan.