New Perks to Entice Taxpayers in Pakistan
November 29, 2013 Taxation in Pakistan
ISLAMABAD – Pakistan is offering to taxpayers free passports, access to VIP lounges and complete immunity from audit checks to taxpayers who meet their obligations.
In an effort to spur greater amounts of foreign direct investment into the country and to help fight the endemic problem of tax evasion and non-compliance, on November 28th the Prime Minister of Pakistan Nawaz Sharif announced that the government will now offer a bevy of new tax incentives, exemptions and investment programs aimed directly at addressing the ongoing tax problems.
According the Prime Minister, starting next year, the 400 individuals who pay the most tax in Pakistan will be issued with Privileged Taxpayer Cards, allowing the holder to receive several government-paid privileges, including access to VIP lounges in airports, increased baggage allowances when flying and free processing of passport applications.
Some of the very highest taxpayers in the country will also be given a national excellence award, and will be invited to dine at a ceremony hosted by the Prime Minister.
In addition to the recognition of high-paying taxpayers, any individual who pays 25 percent more tax than in the previous year will be exempt from audit, and any individual who has consistently filed taxes for the last 5 years will also be exempted from any audits.
In an effort to encourage more foreign direct investment into Pakistan, the Prime Minister also announced that new investment projects being established in Pakistan will be exempt from checks into the source of funds used for the project, although this exemption will not be granted to any business involved in arms manufacturer, ammunition, tobacco or alcohol, and selected other industries regarded as being harmful or at risk of money laundering.
Photo by rchughtai — “not very active”