LAHORE: Lahore Chamber of Commerce & Industry (LCCI) on Wednesday urged the business community to avail Tax Amnesty Scheme 2018 by the end of June. LCCI President Malik Tahir Javaid said that it was a golden opportunity for the business community to give legal status to their undeclared assets by paying five percent tax only. Income tax has been reduced to make tax payment more sustainable.
LCCI President Malik Tahir Javaid said that under the Tax Amnesty Scheme 2018, Computerized National Identity Card (CNIC) number had been given the status of National Tax Number. People would now be able to use their CNIC number to file taxes by simply filling in a form. People having income up to Rs 1.2 million annually had been given tax exemption.
The previous maximum income exempt from income tax was Rs 400,000 only. People who make between Rs 1.2m to Rs 2.4m will be liable to pay five percent income tax, he added.
He said that people having foreign exchange could purchase bonds from the government on which three percent annual profit would also be given, adding that people with undeclared assets within the country would be able to bring them in the tax net by simply paying a five percent penalty.
He added that people who held undocumented assets outside the country would also be able to declare them through the new amnesty scheme. The foreign exchange could be brought back to the country by paying a two percent penalty. He said that beneficiary of Tax Amnesty Scheme would be given protection from NAB, FBR, and FIA. Malik Tahir Javaid said that Tax Amnesty Scheme 2018 was a good measure and a giant leap towards promoting the documented economy.
The LCCI Senior Vice President Khawaja Khawar Rasheed and Vice President Zeshan Khalil said that business community must avail this Scheme.
Pakistan improves mechanism to handle AML/CFT issues
ISLAMABAD: The Finance Minister, Dr. Shamshad Akhtar said Friday that the Finance Ministry has improved institutional mechanisms for handling Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) issues.
Chairing a meeting here Friday in the wake of Financial Action Task Force (FATF) Plenary meeting in Paris, the Minister expressed Pakistan’s strong resolve to keep up efforts on the counter financing of terrorism.
Foreign Minister, Abdullah Hussain Haroon and National Security Advisor Lt. General (retd) Nasser Khan Janjua, were also present on the occasion.
She added that the coordination between Central Bank, banking institutions, and law enforcement agencies have also been strengthened to curb money laundering and terror financing.
She invited participants to share their views and suggestions to further strengthen measures and put in place a strong implementation mechanism in this regard.
The participants while underscoring Pakistan’s resolve to further strengthen the AML/CFT regime emphasized and agreed on the formation of a high-level implementation committee to regularly oversee progress made by different agencies and departments engaged in the drive to counter financing of terrorism.
The meeting stressed inter-governmental cooperation as well as inter-agencies coordination for better results. The meeting was also briefed on the preparations by Pakistan’s delegation scheduled to attend FATF meeting at Paris.
Tax Amnesty Scheme receives good response
ISLAMABAD: Tax Amnesty Scheme was receiving encouraging results and its success would help to resolve the current account deficit and balance of payment issues.
This was stated by a spokesman of Federal Board of Revenue (FBR) Dr. Muhammad Iqbal on Friday while addressing a press conference here at FBR House. Muhammad Iqbal said the number of beneficiaries under tax amnesty scheme was increasing everyday.
He said under the scheme, the people could benefit by declaring their domestic and foreign assets as they would have to pay only a nominal tax under the scheme. To a question, the spokesman said the last date of the scheme was June 30 and he did not have any authority to extend the last date of the scheme.
Iqbal said keeping in view the benefits of tax amnesty scheme, the caretaker set up was also fully committed to ensuring the success of the scheme. He said government, as well as public representatives, were not eligible to take benefit from the scheme while people involved in different crimes were also not allowed to benefit from it.
Senate body discusses tax relief in FATA, Malakand
ISLAMABAD: Senate Standing Committee on Finance, Revenue and Economic Affairs on Friday discussed tax exemption for commercial enterprises in Federally Administered Tribal Area (FATA), Provincially Administered Area (PATA) and Malakand Division.
The meeting of the committee was held here today under the chairmanship of Senator Farooq H. Naek and was attended by Senators Mian Muhammad Ateeq Shaikh, Muhammad Akram, Mohsin Aziz, Dilawar Khan, Khanzada Khan, Aurangzeb Khan, senior officers from the Federal Board of Revenue (FBR) and Ministry of Finance.
Senator Mirza Muhammad Afridi, Senator Fida Muhammad, and Senator Shamim Afridi were specially invited for their valuable input regarding issues that came under discussion with regards to the people of FATA, PATA and Malakand Division.
The meeting commenced with consideration of a point of public importance raised by Senator Mirza Muhammad Afridi regarding utilization of Zakat Funds in the education and health sectors and details that revealed disbursement of those funds to FATA. However, the matter was deferred since secretary ministry of Finance was not present. The Committee took strict notice of this matter.
While discussing the issue of exemption to pensioners from filing tax returns on the public petition of Major (R) Ghulam Abbas, the Committee questioned Dr. Muhammad Iqbal, Member IR Policy FBR of the circumstances under which pensioners are taxed. He revealed that under FBR rules, pensioners are not taxed unless they possess taxable movable or immovable property; or if they accept other employment after retirement.
He further stated that the petitioner was not included in the tax list. Chairman Committee, expressed satisfaction and disposed off the petition; issuing directions for the petitioner to be informed of the decision.