Pakistan Announces Tax Amnesty.
As an incentive to tax payers to deposit their due taxes, the Pakistan Federal Board of Revenue (FBR) has announced an amnesty scheme, waiving penalty charges on all overdue taxes.
Pakistani Finance Minister Abdul Hafeez Shaikh had announced in his budget speech that the country's budget deficit would be slashed to a four-year low of 4% of GDP in the fiscal year starting July 1. He planned that income would rise predominantly by tackling tax evasion, and it is hoped that this amnesty will help.
This is the second such scheme in three months, after the FBR offered an amnesty to the textile industry in March in an attempt to broaden the tax base. On that occasion the FBR said that it would not raise questions about previous sales tax transactions, and in return it hoped to register more than 100,000 new taxpayers.
The FBR agrees with the opinion that rewarding people for not paying taxes could put off those law abiding citizens who do follow the straight and narrow, however the Board is under considerable pressure to meet a PKR1.6 trillion (USD18.5bn) revenue collection target.
Three separate statutory regulatory orders covering income tax, sales and tax and customs duties have been issued.
Shortly after the amnesty announcement the FBR issued instructions to all Inland Revenue Offices to remain open till late in the evening on two days before the end of the month in order to provide an opportunity for taxpayers to deposit their taxes within the fiscal year.
All branches of the National Bank of Pakistan and all customs offices have also been instructed to stay open late to receive duty and taxes and to facilitate taxpayers.
As an incentive to tax payers to deposit their due taxes, the Pakistan Federal Board of Revenue (FBR) has announced an amnesty scheme, waiving penalty charges on all overdue taxes.
Pakistani Finance Minister Abdul Hafeez Shaikh had announced in his budget speech that the country's budget deficit would be slashed to a four-year low of 4% of GDP in the fiscal year starting July 1. He planned that income would rise predominantly by tackling tax evasion, and it is hoped that this amnesty will help.
This is the second such scheme in three months, after the FBR offered an amnesty to the textile industry in March in an attempt to broaden the tax base. On that occasion the FBR said that it would not raise questions about previous sales tax transactions, and in return it hoped to register more than 100,000 new taxpayers.
The FBR agrees with the opinion that rewarding people for not paying taxes could put off those law abiding citizens who do follow the straight and narrow, however the Board is under considerable pressure to meet a PKR1.6 trillion (USD18.5bn) revenue collection target.
Three separate statutory regulatory orders covering income tax, sales and tax and customs duties have been issued.
Shortly after the amnesty announcement the FBR issued instructions to all Inland Revenue Offices to remain open till late in the evening on two days before the end of the month in order to provide an opportunity for taxpayers to deposit their taxes within the fiscal year.
All branches of the National Bank of Pakistan and all customs offices have also been instructed to stay open late to receive duty and taxes and to facilitate taxpayers.
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