Tax Amnesty Launched in Pakistan
June 12, 2013 Taxation in Pakistan
ISLAMABAD – Pakistan is offering a new tax amnesty in a last ditch effort to meet its own annual tax revenue targets.
On May 11th the Federal Board of Revenue of Pakistan (FBR) revealed that it has launched a new tax amnesty program aimed at individual taxpayers who have not yet met all of their tax filing obligations.
Under the conditions of the new amnesty, accrued tax penalties, fines and interest charges will be waived for taxpayers who pay off all taxes and duties owing by June 30th.
The amnesty will not be available to taxpayers who are under investigation for tax evasion, tax fraud, or any related criminal activity.
The amnesty is intended to help the FBR reach its tax revenue target for the year, which is now set at PKR 2 050 billion, after having been revised downward twice this year from PKR 2 381 billion and PKR 2 191 billion.
This is not the first time this year that Pakistan has turned to using tax amnesties in order to raise tax revenues, having already offered programs for individuals to declare any unpaid taxes on the import of vehicles and previously unreported sales in the textile industry.
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