ISLAMABAD: The federal government can enact a presidential ordinance today to bring into effect a tax amnesty scheme announced earlier this week, sources claimed.
On Thursday, Prime Minister Shahid Khaqan Abbasi introduced a fresh tax amnesty scheme for nonpayers as a part of five-point amendments package on income tax, which was criticised by the Pakistan Tehreek-e-Insaf (PTI) and the Pakistan People’s Party (PPP).
If the scheme is not implemented through the ordinance, it would have to be passed by the parliament, which would be a difficult task for the Pakistan Muslim League-Nawaz (PML-N) apparently.
The announcement of tax relief for non-filers came months before the government’s tenure is going to be ended.
The amnesty scheme is valid till June 30.
Income tax amendments package
According to the package, income up to Rs0.1million per month will not be taxed.
A ten percent tax will be levied on annual income between Rs2.4-4.8mn.
Annual income above Rs48million will be taxed at a 15-percent rate.
The package also allowed cash assets abroad be brought back by paying a two-percent penalty.
Prime Minister Abbasi also announced that the Computerized National Identity Card (CNIC) number will be used as the income tax number in the future.