Unlike tax amnesties from other countries, the Pakistan version is relatively short and will only run from 8 April to 30 June 2018.
The amnesty forms part of a five-point tax plan approved by president Mamnoon Hussain on Sunday, in an attempt to shore up reserves in a country in which only 1% of the population pays tax.
Politically exposed persons
The amnesty is open to “every company, association of persons and all citizens of Pakistan wherever they may be, except holders of public office, their spouses and dependent children”.
This includes the president, prime minister, chairman of the senate, attorney-general and members of parliament – all the way down to deputy mayors of municipal councils.
However; it was later clarified that it only excluded those who are or have been a holder of public office at any time since January 2000.
Therefore, holders of public office prior to January 2000 can take advantage of the amnesty.
Reduced rates
The Pakistan Revenue confirmed that all Pakistanis have been given an amnesty rate of between 2% and 5% to “white their illegal/undocumented money and assets”.
The 2% rate will apply to liquid assets that are repatriated.
A charge of 3% will be made on immovable assets outside of Pakistan, while a 5% tax will be put on liquid assets that are kept overseas.
