Dr Shamshad Akhtar care taker Finance Minister asked all the stake holders of Pakistan Stock Exchange that newly promulgated Tax Amnesty Scheme has been introduced has well designed and it should be used to declare all assets or cash parked offshore or within the country.
The Caretaker Finance Minister Shamshad Akhtar met board of directors of Pakistan Stock Exchange on Monday in Karachi and urged the board of directors comprising of senior brokers that all the irritants related or arising about tax amnesty scheme would be removed.
She said a meeting will be held in Islamabad on Tuesday where officials belonging to Ministry of Finance , Federal Board of Revenue, State Bank of Pakistan will be present, moreover she invited members of board of directors of PSX, CDC and National Clearing of Pakistan to deliberate the issues arising after announcement of Tax Amnesty Scheme. “This is the best scheme and well developed plan offered by the government and one should avail it”, she said.
The meeting in Federal Capital has been called to remove all irritants. Following the removal amended notification and circulars would be issued.
Dr Shamshad Akhtar said State Bank of Pakistan would also to release circular after having discussion with the members Federal Board of Revenue and Ministry of Finance with regard to those expatriates who hold assets off-shore but do not have foreign currency or any foreign currency accounts.
She informed participants that the scheme cannot be extended beyond the June 30 deadline and that they should work diligently to maximize the amount of assets submitted under the scheme.
“ We planned to facilitate the scheme in a such a manner that tax amnesty scheme to be availed to broaden tax net and document the economy” she added.
In April the government has Introduced a tax amnesty scheme through which people with undeclared income earned before June 30, 2017 on assets within the country will be able to bring them in the tax net by simply paying a five per cent penalty.
People who hold undocumented assets outside the country will also be able to declare them through the new amnesty scheme.
Foreign exchange could be brought back to the country by paying a 2 percent penalty.
Fixed assets will incur a 3 percent penalty, to be evaluated at the market value of the asset, which cannot be less than the cost of its acquisition.
Foreign liquid assets like cash, securities and bonds held abroad and in local dollar accounts may be declared with a 5 percent penalty.
Dollar account holders in Pakistan who have purchased dollars with undeclared funds can also regularise them on 2 percent payment.
Further, all remittances less than $100,000 per year per person will continue without any questions from any agency about the source of funds and enjoy tax exemption. All remittances greater than that amount will enjoy tax exemption but may be scrutinised by the Federal Board of Revenue.
Furthermore, any new foreign exchange accounts can only be opened by tax filers.
“People who take part in the amnesty scheme will be given a one-time exemption from accountability and other laws,” the prime minister explained. However, he stressed that politically exposed persons and their families will not be able to avail the amnesty scheme.
Earlier, Mr. Husain Lawai, Chairman PSX Board welcomed the Hon’ble guest and thanked her for taking time to visit PSX. The event was attended by Commissioner (SMD)-SECP, members of PSX Board & Management, Senior Market Participants and CEO-CDC.
Mr. Richard Morin briefed the participants about PSX and stated that it plays a central role in capital formation without which there can be no sustainable economic growth. He respectfully submitted that PSX and the Government of Pakistan share a mission to work for the betterment of the life of people of Pakistan and to ensure that this country assumes its rightful place among the world’s most important economies. He also apprised about the ambitious Strategic Plan to modernize Pakistan’s capital market and unlock its tremendous development potential, including:
- Launching new products like exchange traded funds and sharia compliant products targeted at middle class Pakistanis as well as derivatives to broaden our offering;
- Developing the retail bond market;
- A national investor awareness and education program;
- Acquiring world class trading and market surveillance systems;
- Streamlining the account opening and documentation process;
- Improving investor protection.
The participants expressed their gratitude to the Minister and their full support for the Caretaker government.
The Chairman of the PSX Board of Directors thanked the Minister for her visit to PSX and meeting with the Board members as well as market participants.