Islamabad: President Dr Arif Alvi on Wednesday (March 2) announced to amend the Income Tax Ordinance 2001 in a bid to extend the tax amnesty scheme for the industrial sector, according to media reports. This scheme will encourage entrepreneurs to use their undisclosed assets to invest in industrial undertakings.
The amnesty scheme features incentives for the promotion of industrial activities, foreign investment in the industrial sector, and revival of sick units. As per the details, a general amnesty will be given to all persons who declare assets by paying a general tax rate of 5% by investment in new industries. The investors will get complete immunity from the probe on the source of amount of investment for modernisation, expansion of existing units and in new industries.
Reportedly, the minimum amount to avail the amnesty is set at PKR 50 million and the industrial unit must be set up as a company. The new industrial unit should start commercial production by June 30 2024. Moreover, details were shared on the eligibility criteria for this facility. It was disclosed that the beneficiaries of the previous amnesty are not eligible for this year’s amnesty programme. Also, the bank loan defaulters in the last three years were not eligible for this facility either. The ordinance mentions that any proceeds of corruption, crime, terror financing and money laundering cannot avail this facility. Likewise, any amount that is subject to departmental or court proceedings is unable to avail the tax amnesty.
Furthermore, some sectors are not eligible for this amnesty facility like explosives, arms & ammunition, aerated beverages, cooking oil & vegetable ghee oil manufacturing excluding extraction units, cigarettes, flour mills, and sugar.
According to detail, the person must declare and file a statement for the funds for investment in the new company by September 30, 2022. The declared funds will be utilised for the import or purchase of machinery or plants for the construction of building for the industrial sector.
Reportedly the amount declared will be confidential and will not be disclosed to any department, authority, or court including the National Accountability Bureau (NAB) by the Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA). It was disclosed that no disposal of assets and ownership change for an industrial undertaking company will be possible before June 30, 2026.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
