Imran Khan's new industrial amnesty package may legalize corruption
Mar 03, 2022
Lahore [Pakistan], March 3 : The new industrial 'amnesty' package announced by Pakistan Prime Minister Imran Khan may legalise corruption.
This would be the third amnesty package being offered to those who may be trying to legalise their ill-gotten wealth, reported Dawn.
Khan made this announcement in Lahore, a day after announcing a dramatic cut in fuel and electricity rates.
It allows investors to put their money into new industries, no questions asked, reported Dawn.
According to the summary moved by the Federal Board of Revenue (FBR), seeking the promulgation of the ordinance titled: 'Ordinance for amendments in the income tax ordinance, 2001 via income tax (amendment) ordinance, 2022', the package will render investors immune from disclosing the source of their money upon the payment of 5 per cent tax of the total amount.
The government is yet to clarify whether or not it discussed this move in detail with the International Monetary Fund (IMF) and obtained their go-ahead before making the announcement, reported Dawn.
Under the package, if eligible non-resident and resident Pakistani individuals repatriate their declared foreign assets into Pakistan for investment into the industrial sector, they would be entitled to 100 per cent tax credit for the next five years.
Commenting on the package, Dr Sajid Amin Javed of the Sustainable Development Policy Institute (SDPI) said the fate of the amnesty scheme announced for the industry could be like the previous ones announced by this and preceding governments, reported Dawn.
"I don't see it being good for the economy, as people in Pakistan generally think that another amnesty scheme would come after this one. That is why they don't join such schemes despite being offered a very low tax percentage," he explained.
"I see this package as a political move and nothing more," he feared.
