Declarations under tax amnesty scheme to remain confidential: finance ministry

ISLAMABAD: The Ministry of Finance has assured all applicants making declarations under the tax amnesty scheme that the information provided by them shall remain strictly confidential.

The ministry has stated that guarantees provided under the scheme shall be abided in letter and spirit, and any information leaked will be punished with criminal conviction.

The ministry has reiterates that leakage of information by anyone about declarations under the scheme is punishable, on conviction, by a fine not less than 500,000 rupees but not exceeding one million rupees or imprisonment for a term not exceeding one year or both.

Earlier this month, the caretaker government extended the tax amnesty scheme for a month with a cut-off date till July 31, keeping in view people’s interest in declaration of foreign and domestic assets.

The extension has been put into effect through a Presidential Ordinance, after the federal cabinet approved the extension on the recommendation of caretaker Finance Minister Shamshad Akhtar.

The Federal Board of Revenue (FBR) it hopes to generate more than Rs100 billion in taxes on foreign and domestic assets to be declared under the scheme.

New data released by the finance division shows that around 55,225 people have filed returns declaring their Rs 570 billion worth of foreign and Rs 1,192bn domestic assets under the tax amnesty scheme.

The amnesty scheme for foreign assets applied to both liquid and immovable assets such as bank accounts, shares, and mortgaged properties.

The tax rates for foreign assets range from two percent to 5pc, depending on the type of assets. Special tax rate of two percent is applicable to liquid assets which are repatriated to Pakistan.

The amnesty scheme for domestic assets covers all types of assets and income, with tax rates of two percent and five percent.