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Tax Amnesty Scheme 2016 Pakistan Real Estate

In some countries, government starts the amnesty scheme for a specific group of taxpayers (to pay a defined tax of the total tax amount each month).

Amnesty Scheme Post Contains

The amnesty scheme is a limited time opportunity and not the lifetime or permanent. The amnesty program is started in order to exchange for forgiveness of a tax, penalties and interest which are related to the previous tax periods and free of any criminal prosecution. In this, I am going to describe the brief information of the amnesty scheme in Pakistan. Take a look and keep yourself up to date about the entire tax amnesty scheme.

Tax Amnesty Scheme for the Traders

Here is brief information about the Amnesty scheme for traders in the first week of January 2016. There is a need of the effective tax amnesty scheme for traders with incentive packages in order to get enrolled with the tax authorities and avoid additional charges being non-filers. A meeting is conducted by Finance Minister Senator Muhammad Ishaq Dar about this issue which was attended by the business community, traders, representatives, and other political agents at Federal Board of Revenue (FBR) in the last week of December 2015. Some useful information about this meeting:

  • The special advisor also takes part in the meeting in order to get information to the Prime Minister (PM), Haroon Akhtar, Chairman FBR and other FBR officials.
  • The discussion between business communities and tax authorities have been starting from the mid of July 2015, but despite a lapse of six months both the sides had failed to reach consensus. As a result, a draft agreement was developed by both parties i.e. business community and tax authorities.
  • As a result of this discussion the final date for filing the income tax is extended many times and at last the 31st December is the last and fixed date for filling all the expenses of income tax.
  • The meeting reviewed the progress of talks that have been held between the traders and the FBR during the past few mid of July 2015 with the aim of facilitating the business community.
  • After hard work and concerted discussion between the two parties for devising a package for traders/business community including both filers and non-filers, a meeting is conduct which announced all the entire important and necessary modalities, and the package would in the first week of January 2016 in the form of Tax Amnesty Scheme, describe in this article below.
  • The traders and businessmen paid gratitude to the Finance Minister, Ishaq Dar and the FBR team for continued engagement with the business community with the aim to addressing their problems. They said that the decisions by both sides would InshaAllah be received positively.
  • Prominent businessmen community representatives who attended the meeting included Naeem Mir, Secretary General APAT, Ajmal Baloch, President APAT, Chaudhry Mehboob Ali Sirki, President Anjuman e Tajaran Punjab, and Mr. Ateeq Mir from Karachi.

Amnesty Scheme of Pakistan January 2016

In order to broaden the tax net for the thieves’ government of Pakistan has decided to start another tax amnesty scheme in January this year. In this scheme, it is decided that the taxpayers for the purpose to broaden the tax net through paying 1% of tax on their black money and also turning it into white.

It is decided by the government of Pakistan another reward is also given to the tax evaders in the form of other tax amnesty scheme. Grand Amnesty Scheme is announced by the Pakistan government which is based on paying 1% tax on the black money and as well as will turn it into white, instead of recovering the tax from the evaders.

Amnesty Scheme Duration

The duration of the amnesty scheme will be from 2016 to 2018 in which all the tax payers are observed and find out those invaders who have not pay their tax and all of these taxpayers will turn their black money into white by paying just 1% tax on their income.

Tax Amnesty Scheme Slabs

The scheme is divided into three slabs. These slabs are defined one by one below here:

  • First Slabs: Business who sales up to RS. 50 million will pay the tax of 0.2%
  • Second Slabs: For a sale between Rs. 50 million and 250 million a fixed amount of 100,000 is deducted as a tax and as well as 0.1% tax will be applicable on sale above Rs. 250 million.
  • Third Slabs: For sale above Rs. 250 million the fixed amount is Rs. 400,000 with an additional 0.1% tax will be deducted for sales above Rs. 250 million.

The Expectation of Benefits from the Tax Amnesty Scheme

It is said that FBR expects more that 10,000 benefits from the amnesty scheme till expiry of the deadline April 30, 2016, by whitening working capital to the tune of Rs100 billion.

Under the rules and regulation of Voluntary Tax Compliance Scheme (VTCS), the FBR is collecting Rs01 billion from all the business communities and traders and the percentage will be increases on the basis of their sale increments, and all this process in going till the expiry of upcoming deadline. In one official interview the EBR told that they so far, they have received 7,900 beneficiaries who deposited Rs760 million by declaring working capital of Rs76 billion under VTCS. 

As expected the FBR will cross 10,000 beneficiaries under VTCS till the epixry date i.e. the December 2016, told by the special assistant to PM on Revenues Haroon Akhtar Khan in his new interview a couple of month ago. He also said that:

The Pakistan government would take decision after expiry of deadline either to close down the VTCS or grant another extension. “At the time, it is not yet known that whether the VTCS will continue or it will end after deadline of April 30,” he added.

Hope the above information of amnesty scheme in Pakistan will help you a lot, for more information stay tune with our site.