55,000 people have availed the tax amnesty scheme: Report

ISLAMABAD: 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 report also shows that the declarants have paid around Rs 97 bn taxes and more are expected in the near future.

In an official statement issued by the Finance division, it is stated that the amnesty scheme for foreign assets applied to both liquid and immovable assets such as bank accounts, shares, and mortgaged properties.

The official statement also said that 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.

Tax amount of Rs 36 bn on whitening of foreign assets and Rs 61 bn on domestic assets is received by the government.

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

The State Bank of Pakistan has devised a procedure for payment of tax on foreign assets where tax in US dollar is deposited into SBP’s account through wire transfer.

According to Pakistan’s US Dollar-Denominated Amnesty Rules, 2018, issued by the government of Pakistan, SBP has been authorized to issue these bonds having a maturity period of five years and annual profit of three percent to be paid half-yearly.

Also, the citizens of Pakistan can invest in these bonds out of remittances declared under the foreign amnesty or through encashment of foreign currency accounts held in Pakistan.

To regulate foreign exchange movements necessary amendments have also been made to the Protection of Economic Reform Act, 1992. Which is expected to bring them in line with the Income Tax Ordinance, 2001.

The last date for the tax amnesty scheme has already been extended until July 31.