ISLAMABAD: The federal government has barred the government office-holders and their close relatives from availing the tax amnesty scheme for industrial sector.
The pouses and dependent children of the public office holders are not allowed to take benefit from the scheme.
The President of Pakistan Dr Arif Alvi has promulgated the Income Tax (Amendment) Ordinance 2002 and included certain provisions for those public office holders who could not avail the amnesty scheme.
On Tuesday (March 1, 2022), the federal cabinet on Tuesday gave a nod to promulgation of an ordinance to offer a third tax amnesty scheme.
The finance ministry circulated a summary among the federal cabinet members on Monday for their approval of the scheme through the Income Tax Amendment Ordinance 2022. Under the amnesty, the government will allow industrialists to whiten their black money at a 5% rate by investing money in the manufacturing sector. However, the government has put some limits on who is eligible to available in the scheme and who is not.
This is how it works:
This amnesty scheme is available for everyone, except for people who hold public office and their spouses and children; public companies as defined in clause 47 of Section 2 of this ordinance; and people who have filed declarations under the Voluntary Declaration of Domestic Assets Act, 2018, the Foreign Assets (Declaration and Repatriation Act, 2018, or the Assets Declaration Act, 2019; a person that has been declared a bank loan defaulter by a bank or a financial institution within the last three years; or (e) a director of a company who has been declared a bank loan defaulter by a bank or a financial institution within the last three years.
The provisions of this section shall not apply to — (a) any proceeds of crime, corruption, money laundering, or terror financing; (b) any amount subject to any departmental or court proceedings; and (c) investments made in the following sectors, namely: (i) arms and ammunition; (ii) explosives; (iii) sugar; (iv) cigarettes; (v) aerated beverages; (vi) flour mills; (vii) vegetable ghee; and (viii)
The definition of Public Officer Holder as provided in Voluntary Declaration of Domestic Assets Act, 2018 “holder of public office” means a person who is or has been, during the preceding ten years,– (i) the President of the Islamic Republic of Pakistan or the Governor of a Province; (ii) the Prime Minister, Chairman Senate, Speaker of the National Assembly, Deputy Chairman Senate, Deputy Speaker National Assembly, Federal Minister, Minister of State, Attorney General for Pakistan and other Law Officers appointed under the Central Law Officers Ordinance, 1970 (VII of 1970), Adviser or Consultant or Special Assistant to the Prime Minister and holds or has held a post or office with the rank or status of a Federal Minister or Minister of State, Federal Parliamentary Secretary, Member of Parliament, Auditor-General of Pakistan, Political Secretary; (iii) the Chief Minister, Speaker Provincial Assembly, Deputy Speaker Provincial Assembly, Provincial Minister, Adviser or Consultant or Special Assistant to the Chief Minister and who holds or has held a post or office with the rank or status of a Provincial Minister, Provincial Parliamentary Secretary, Member of the Provincial Assembly, Advocate-General for a Province including Additional Advocate-General and Assistant Advocate-General, Political Secretary (iv) the Chief Justice or, as the case may be, a Judge of the Supreme Court, Federal Shariat Court, a High Court or a Judicial Officer whether exercising judicial or other functions or Chairman or member of a Law Commission, Chairman or Member of the Council of Islamic Ideology; (v) holding an office or post in the service of Pakistan or any service in connection with the affairs of the Federation or of a Province or of a local council constituted under any Federal or Provincial law relating to the constitution of local councils, co-operative societies or in the management of corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization established, controlled or administered by or under the Federal Government or a Provincial Government or a civilian employee of the Armed Forces of Pakistan: Provided that a member of the Board, not actively engaged in the business and day-today affairs of the said corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization shall not be treated as holder of public office under this subclause; (vi)the Chairman or Mayor or Vice Chairman or Deputy Mayor of a zila council, a municipal committee, a municipal corporation or a metropolitan corporation constituted under any Federal or Provincial law relating to local councils.
