Last Thursday, 3rd of March 2022, the Federal Government initiated a tax amnesty scheme for industrialists to establish new industrial units. This Tax Amnesty Scheme had been put on the table through the Presidential Ordinance.
In the context of this Tax Amnesty Scheme, the government through the Federal Board of Revenue (FBR) will not question the sources of funds for establishing the industrial units. Instead of this, the government will give industrialists a green signal to whiten their black money by investing their money in the manufacturing sector at a tax rate of 5%. The Tax Amnesty Scheme will include undisclosed funds, which may belong to crime, corruption, money laundering and other sources. Furthermore, those funds which are from any department or court proceedings will not be made a part of tax amnesty scheme.
The minimum amount which will require as an eligibility criteria for the people involves: 50 Million. Particularly, those people who want to avail the tax amnesty scheme. They have to declare the amount in the upcoming tax year.
Those eligible people who will avail and invest through this scheme, their investment shall ultimately start into commercial production and will be processed by June 30, 2024.
The amount invested under this scheme will not be refundable or adjustable in the tax declaration. Any investor who would have invested through the scheme, will have to also declare this investment in the wealth statement, financial statement, or book keeping.
The sectors which are not included in the amnesty scheme includes arms and ammunition, explosives, sugar, cigarettes, aerated beverages, flour mills, vegetable ghee, cooking oil manufacturing; exclusive of extracting units.
In conclusion, the Tax Amnesty Scheme for industrialists in Pakistan is an opportunity for those who wish to establish new industrial units and whiten their black money. The scheme has certain eligibility criteria and includes undisclosed funds, except those from any department or court proceedings. The manufacturing sector will benefit from this investment, and investors must declare their investment in their wealth statement, financial statement, or bookkeeping. It is a step towards economic growth and development for Pakistan.