KARACHI: Fearing stiff resistance in parliament, the Government of Pakistan has given legal shelter to the recently announced tax amnesty scheme through the presidential order, paving way for those hiding assets to declare.
The president of Pakistan Mamnoon Hussain on Sunday signed four ordinances including “Foreign Assets (Declaration and Repatriation) Ordinance 2018” into law, giving legal cover to the Economic Reforms Package (ERP).
Other ordinances are Voluntary Declaration of Domestic Assets Ordinance 2018, Income Tax (Amendment) Ordinance 2018, and Economic Reforms (amendment) Ordinance 2018.
With the promulgation of president ordinances, the names and identities of those availing the scheme by declaring local and offshore assets would remain confidential.
Prime Minister Shahid Khaqan Abbasi had announced a five-point tax reforms package on Thursday, which included a tax amnesty scheme for undeclared foreign and domestic assets, and reduction in individual income tax rates.
The purpose of the government’s incentive package is to boost the country’s declining foreign exchange reserves and increase the number of income taxpayers, which stands at 1.2 million at present.
The ordinance would now enforce the five-point tax reforms package and the tax amnesty scheme for undeclared foreign and domestic assets.
According to the ordinance, the officials appointed by the government for the implementation of the ordinance would be empowered. The provisions of the ordinance shall apply to all citizens of Pakistan wherever they may be, except holders of public office including politicians, their spouses and dependent children.
The foreign assets declared and repatriated into Pakistan within a given time will be brought under the tax net by paying 5 percent, while those holding assets abroad will be able to declare by paying 2 percent charges.
The prime minister had announced that the government will monitor the financial records of citizens and issue notices if it finds tax evasion.
Abbasi announced that all 120 million national identity card holders would be assigned tax numbers.
Pakistan is facing measures from the Financial Action Task Force (FATF) and the country is scheduled to be gray-listed in June this year. In an email to the government of Pakistan, the FATF has expressed its concerns over the whitening of assets by violation of anti-money laundering laws. However, Pakistan has assured that tax amnesty scheme does not violate money laundering laws.
“Pakistan’s tax amnesty scheme adheres to all international anti-money laundering laws,” said Miftah Ismail, the adviser to prime minister on finance who received the email said, according to local Geo TV.
Ismail shared that he has received an email from the global money-laundering watchdog, FATF, calling for global needs and the agreed-upon guidelines to be respected.
“The FATF has stressed upon strict monitoring of money laundering and terrorist financing activities,” the Pakistani premier’s financial adviser said.
Many political parties had voiced against the tax amnesty scheme, calling it against the honest taxpayers. The government, fearing furious opposition, has decided to implement the scheme through the presidential ordinance.
“The tenure of presidential order ends after 90 days, which means the government will have to go through the parliament to get it approved,” senior lawyer and former president of the Income Tax Bar Association, Abdul Qadir Memon, told Arab News.
President Mamnoon Hussain signs ordinance for tax amnesty scheme
President Mamnoon Hussain signs ordinance for tax amnesty scheme
- Identities of those declaring local and offshore assets will remain confidential under the new law
- The scheme has been opposed by various parties, calling it against the honest taxpayers
Nine Afghan citizens killed, 10 injured in accident in southwestern Pakistan— police
- Pickup truck carrying Afghan nationals collided with oil tanker in Nokundi town, says police official
- Says Afghan nationals were attempting to enter Europe illegally via Iran as per preliminary probe
QUETTA: At least nine Afghan nationals were killed and 10 others injured in southwestern Pakistan on Sunday when the pickup truck they were traveling in collided with an oil tanker, a police official said.
The collision occurred in Nokundi, a town located on Pakistan’s border with Iran in the southwestern Balochistan province. District Police Officer Muhammad Shareef Kalhoro told Arab News that the Zamyad vehicle (a pickup truck made by Iranian automobile manufacturer Zamyad Co.) was transporting Afghan nationals illegally when the accident took place.
“Twenty-one illegal Afghan migrants were onboard the Zamyad vehicle when it was hit by an oil tanker in the kacha [remote] area of Nokundi,” Kalhoro said.
“Nine Afghans were killed on the spot and 10 were injured in the serious accident,” he added.
The police official said the bodies and injured persons were sent back to Afghanistan through cross-border coordination and in accordance with legal protocol.
Kalhoro said preliminary investigations indicate the Afghan nationals were attempting to enter Europe illegally from Afghanistan via Iran, facilitated by an organized human smuggling network.
“All legal proceedings have been initiated, and the human smuggling network is being traced for further action,” he said.
Pakistan launched a nationwide crackdown against people living in the country illegally in 2023, with Afghan refugees bearing the brunt of the deportation drive. Pakistan says it has deported over 1.5 million Afghans since then. The crackdown was launched after a spate of suicide attacks in the country that Islamabad blamed on Afghan nationals without providing proof.
Thousands of migrants travel illegally through the desolate areas of Chaghi district in Balochistan every year in an attempt to reach Europe via Iran.
Balochistan, home to the multi-billion-dollar China-Pakistan Economic Corridor project, is considered by experts to be Pakistan’s most underdeveloped province across almost all social and economic indicators.
The province is also home to multi-billion-dollar mineral projects such as Saindak and Reko Diq. However, most districts in Balochistan have dilapidated roads, which often lead to fatal accidents.
