Islamabad: Prime Minister Shahid Khaqan Abbasi has announced a special tax amnesty scheme for the Pakistanis who are non-payers.

Addressing a press conference after Economic Advisory Council meeting here Thursday, the Premier said only 700,000 people across the country pay tax. Government is introducing this tax amnesty scheme to bring more people in tax net.

“Non-payment of tax increases indirect tax burden on the common people,” PM remarked.

Those having their assets abroad can benefit from this scheme after paying 2 percent penalty,” he said.

The PM said the amnesty scheme will be valid till June 30, however, he clarified that political persons and their families could not benefit from this scheme. 

Explaining details of the amnesty scheme, the Prime Minister said it would be one time incentive upto 30th of June to declare hidden assets inside and outside Pakistan.

Announcing reduction in the percentage of the income tax, he said the citizen having Rs100,000 per month income is exempted from the tax.

He said there would be 5 percent income tax on income falling between Rs 1.2 to 2.4 million annually.

Shahid Khaqan Abbasi said the rate of income tax for the income bracket of Rs 2.4 to 4.8 million would be 10 percent and 15 percent on more than Rs 4.8 million.

PM Abbasi said in future the Computerized National Identity Card (CNIC) number will be used as the income tax number.

He expressed the confidence that the substantial reduction in income tax rate would serve as incentive for people to pay tax.