ICCI for one-time amnesty on stashed money in foreign countries

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Iqbal Zafar Jhagra meets Shehbaz Sharif

ISLAMABAD, Jul 1 (APP): The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to consider introducing one-time tax amnesty scheme for those Pakistanis who have stashed their money abroad to bring back their undeclared wealth on payment of a  nominal amount of tax and become an active part of formal economy.

Sheikh Pervez Ahmed, Acting President, Islamabad Chamber of Commerce and Industry in a statement issued here said that
many wealthy Pakistanis have kept their billions of dollars abroad
due to various reasons and offering one-time tax amnesty scheme
would incentivize them to bring their undeclared foreign wealth to
their home country.

He said with such an incentive, repatriated capital in billions  of dollars would enter Pakistan’s financial system and boost economic activities in the country.

He said Pakistan needed huge capital to fund infrastructure and  other developmental projects, but with low tax-to-GDP ratio, the  country was unable to generate enough tax revenue to enhance spending  on health, education, social sector and development projects.

This situation was increasing the country’s reliance on foreign borrowings, which was not good for its economic future.

He was of the view that one-time amnesty would facilitate inflow  of huge amount of foreign assets/capital into the country that would  help in accelerating economic growth in the country.

Sheikh Pervez Ahmed said that Indonesia has also passed a tax amnesty law to give multi-billion dollars boost to its economy as it believed that the amnesty would bring in billions of dollars of  additional revenue by offering low tax rates to those who wished to come forward to declare their untaxed wealth kept in foreign lands.

He said one-time amnesty scheme would also encourage more investment in the country, create many new jobs and contribute
positively to poverty alleviation.

He said with the positive economic outlook of the country,
many Pakistanis were ready to declare their foreign assets/cash on
payment of nominal tax to become part of the national economy and
amnesty scheme would facilitate them in realizing this objective.