PM announces tax reforms package, amnesty scheme for undeclared assets

ISLAMABAD (Dunya News) – Prime Minister Shahid Khaqan Abbasi on Thursday while announcing an amnesty scheme for the non-taxpayers said that the politicians could not take advantage of the scheme.

Addressing a press conference in Islamabad on Thursday, he said that paying tax was the duty of the every citizen and not paying taxes was a crime.

The prime minister said that only 1.2 million people are filer income tax return out of a population of 207 million, adding that only 700,000 were paying tax while others only filed returns and paid no income tax.

“The maximum rate of income tax was being reduced from the existing 30% to 15%, Abbasi said and added annual income of upto Rs1.2 million would be exempted from the income tax.

He said that an individual earning Rs4.8 million per annum will pay 15 percent tax, adding that the rate of income tax for the income bracket of 2.4 to 4.8 million rupees would be 10 percent.

There would be five percent income tax on income falling between 1.2 to 2.4 million rupees annually.

The premier said that even those who have been paying income tax include 90% whose tax is deducted at source.

Abbasi expressed the confidence that the substantial reduction in income tax rate would serve as incentive for people to pay tax.

He said Computerized National Identity Card (CNIC) number would now be the tax number of the citizens. “120 million card holders can become tax payer by filling a form,” he said.