The payment of liable taxes is crucial as it is your obligation as a responsible citizen. Without the tax, the government will not be able to meet your expectations. It will raise the standards of living as the government needs taxes for many social and financial projects. The FBR has introduced a tax amnesty scheme where people have a limited time to pay a tax of undeclared or foreign properties. In previous years, this scheme with different terms, conditions and ideas have been introduced.
The Policy of Tax Amnesty Scheme
Though the FBR analyses many ideas in order to offer an easy asset amnesty scheme for the public. In 2019 the new tax amnesty scheme will be introduced for a bound time after considering the rates of the taxes, implications, past results of tax amnesty. Pakistan has a tax amnesty schemes on a permanent basis. It facilitates the tax evaders as they get the untaxed money clean by paying a certain amount. In the previous policies, you can declare your offshore assets at 5% tax rate. The rate varies according to the time and financial status.
It gives a positive result in the collection of taxes by FBR. It was announced that the citizens of Pakistan will have to pay the fixed amount under the amnesty laws. If people do not follow that they have to face strict laws and heavier taxes after the declaration of the assets by the government. You have to get registered with the FBR if you are not registered already. If you are registered then you just need to use a specific username and password to fulfil the amnesty conditions.
Conditions and Rates of Taxes under Tax Amnesty Scheme
It is important to maintain the financial status of Pakistan high. It is not just a money grab but the base of the success of your country. Your responsibility and sincerity about paying taxes will contribute greatly to the success and progress of Pakistan. To make Pakistan more flourishing and sustainable, everyone needs to realise the importance of taxes and their duty towards it. Under this policy, you will be able to uncover the unreported income and properties either in Pakistan or outside the country.
As I have already mentioned the 5 percent will be liable while the 2 percent as the one-time penalty is specified for the overseas declaring their properties which ware undeclared previously. In the case of abolishment, the people will have to face strict laws which will be more problematic. A specific time is always specified in which you have to pay the taxes by following certain terms and conditions.
Purpose of Tax Amnesty Scheme
As we see that the purpose of amnesty scheme is just to make people a part of tax network who feel themselves free from any such thing. It is a very positive and beneficial step which will definitely show its results in the near future. The people who do not take this step need to do it now. It will be a source of much relaxation to you also as you do not need to worried about your hidden property which can cause you serious harm if you doesn’t follow the tax amnesty laws. It is the right time to take advantages of this policy and also give benefits to our country.
Pakistan’s debts have been extended to almost $103.4 billion. The scheme is not to grab money from the people under the title of tax. Not at all! The government has some more intentions to save the country from other loans or financial problems. There are no extra payments and difficulties to encourage all those who have already declared money by paying the certain tax amount. In spite of all this, people are still hiding the properties because of fear or uncertainty. It is a major reason which prevents them to take part in this scheme which is necessary both for you and for your country. But we need to break these fears and doubts. It is the only way left to us through which we can make the economic status of our country bright and secure.
Upcoming Policies of Tax Amnesty Scheme
Though the current government has shown a dissatisfaction in the current tax policies including tax amnesty. 2019 is here with the new possibilities, policies and schemes for people in almost every sector. The current government seems very active and concerned to make this policy more effective and workable. No specific taxation amounts and conditions have been introduced yet but they are expected to come soon. Maybe the tax rate will increase along with the procedure. All this will be done in a very effective and planned way which will make people more conscious and active about their tax payments and obligations.
Many people think and labelled it as a failed policy but this is not so. Already, according to an estimate almost $300 million tax has been already taken through this beneficial scheme by the previous government. The current government with new and more technical ideas aim to provide more advantages to the finance of Pakistan with the collaboration of FBR and other concerned authorities.
Conclusion
The aim of this policy is to generalize the trend of taxation among industrialists, businessmen or property owners. The burden will be reduced on common people after the equality of laws about tax payments. More proper laws and policies are needed which we expect to have in 2019 to make people aware and active in tax payments and to realise the importance of tax and its role in the success of the country.