ISLAMABAD – Prime Minister Shahid Khaqan Abbasi on Thursday confirmed a reduction in the income tax percentage, also announcing amnesty scheme for non-payers to bring maximum people into tax net.
Abbasi, who was flanked by Finance Minister Miftah Ismael and Information Minister Marriyum Aurangzeb at a press conference in the federal capital after a meeting of the Economic Advisory Council, said a decision had been taken to introduce a five-point amendments package on income tax.
The Computerized National Identity Card (CNIC) number will be used as the income tax number in the future, the premier said, adding that up to 100,000-rupee salary bracket will not be taxed.
Those earning over Rs48million annually will be liable to pay 15 percent tax on their income, according to the PM, while cash assets abroad could be brought back by paying a two-percent penalty.
Abbasi announced a tax amnesty scheme for nonpayers, however, clarified that politically exposed persons (PEPs) and their families were not eligible to benefit from the scheme. The amnesty scheme is valid till June 30.
- Income up to Rs0.1m per month not taxable
- 10%tax on annual income between Rs2.4-4.8m
- 15% tax on annual income above Rs4.8m
- CNIC to be used as income tax number
- Cash assets abroad can be brought back on payment of 2% penalty
- Foreign assets, which will be brought back, can be declared at lower rates
- Forex accounts within Pakistan will become visible to FBR
- No one without NTN can open forex account
- Anyone receiving remittance over $100,000 in a year shall have to explain source
The EAC held discussions on upcoming budget 2018-19 and pros and cons of proposed tax amnesty scheme under Foreign Asset Declaration Scheme (FADS) in order to bring offshore assets into tax net.
A ten percent tax will be levied on annual income between Rs2.4-4.8 million. And annual income above Rs48m will be taxed at a 15-percent rate.
The premier added that cash assets abroad could be brought back by paying a two-percent penalty.