ISLAMABAD: Pakistan extended a tax amnesty scheme on Sunday till July 31, allowing people to declare their hidden domestic and offshore assets by paying a nominal 2 to 5 percent tax on them.
The scheme was originally launched by the previous government on April 10 and was scheduled to expire on June 30.
“The Federal Cabinet, on the recommendations of the Finance Minister, has approved an extension of the closing date of tax amnesty schemes for declaration of foreign assets and domestic income and assets till July 31, 2018,” Dr. Mohammed Iqbal, member (inland revenue-policy) of the Federal Board of Revenue (FBR), told Arab News.
A summary was approved on Saturday for promulgation of a presidential ordinance to amend the Foreign Assets (Declaration and Repatriation) Act 2018, and the Voluntary Declaration of Domestic Assets Act to extend the amnesty schemes for offshore and domestic assets.
President Mamnoon Hussain promulgated the ordinance to validate the one-month extension with immediate effect.
He said the extension was made on the request of trade bodies, professional associations and the public since “there has been an overwhelming demand and response which is on the rise.
“The extension was also needed to remove ambiguities through clarifications and explanations required to provide certainty to the general public and to ensure effective implementation of the schemes,” he said.
Iqbal said the scheme had also been extended for a month as those declaring foreign assets faced problems in the payment of tax on foreign assets and repatriation of liquid assets.
“It will help the government in bringing undocumented persons, assets and income into the documented sector,” he said. “Depending on the flows, the scheme has the potential to bring in macroeconomic and fiscal stability in the economy.”
Ex-premier Shahid Khaqan Abbasi claimed at the launch of the amnesty scheme in April that it would broaden the tax base from only 1.2 million individuals to 30 million.
The FBR expected to collect around RS120 billion ($32 billion) in tax contributions from those who have used the amnesty scheme. However, by late Saturday night, only RS75 billion could come in the FBR’s kitty.
Pakistanis were allowed to whiten their hidden local and foreign assets at nominal rates between 2 and 5 percent, depending on whether they are declaring domestic or foreign assets and repatriating these possessions to the country or not.
Economists welcome the extension in the amnesty scheme but also urge the authorities to formulate cogent policies to increase the tax net and catch tax evaders to strengthen the country’s economy.
Dr Ashfaque Hasan Khan, senior economist and ex-adviser to the Ministry of Finance, said the scheme had been successful only because the Supreme Court gave it the go-ahead after properly vetting and reviewing its contours.
“The Supreme Court’s approval helped improve confidence of businessmen and the general public in the amnesty scheme and hopefully the FBR will get sufficient revenue through it,” he told Arab News.
Khan said that if Pakistanis declared their foreign assets through the scheme in large numbers, it would also help improve the country's foreign exchange reserves. “For the first time, businessmen and trade bodies have been taking a lot of interest in the amnesty scheme and this shows its success,” he added.
The apex court had taken notice of the amnesty scheme after the then opposition parties had disapproved of it, but later, in June this year, the court approved it after getting it reviewed by economists and tax experts.
Dr. Athar Ahmed, senior economist, termed the tax amnesty scheme a “blessing in disguise” and said the government had no other option but to announce the amnesty to bring more people into the tax net.
“The authorities had to offer incentives to tax evaders because there was no mechanism in place to hold them accountable for their undeclared local and foreign assets,” he told Arab News.
He urged the government to sign agreements with international bodies and other countries to track down undeclared assets of Pakistanis. “Parliament should enact laws to help relevant authorities locate undeclared local and foreign assets of Pakistanis to strengthen the economy,” he suggested.
Pakistan extends tax amnesty scheme for another 30 days
Pakistan extends tax amnesty scheme for another 30 days
- Country expects the plan to broaden the tax base from current 1.2 million individuals to 30 million
- The government extended the scheme on Sunday till July 31, allowing people to declare their hidden domestic and offshore assets by paying a nominal tax on them
London’s Gatwick Airport reopens terminal following security alert
- Police sent a bomb disposal team to deal with a suspected prohibited item that they said had been found in luggage at the airport’s south terminal, 30 miles south of London
- “The earlier security alert has now been resolved and cleared by police,” Gatwick said
LONDON: London’s Gatwick Airport, the second busiest airport in Britain, reopened a terminal on Friday after a security alert earlier in the day forced its evacuation and caused travel disruption for thousands of people.
Police sent a bomb disposal team to deal with a suspected prohibited item that they said had been found in luggage at the airport’s south terminal, 30 miles south of London.
“The earlier security alert has now been resolved and cleared by police,” Gatwick said in a statement. “The South Terminal is reopening to staff and will be open to passengers shortly.”
The incident disrupted weekend travel plans for thousands of passengers, with more than 600 flights due to land or take off on Friday from Gatwick, amounting to more than 121,000 passenger seats, according to data from aviation analytics firm Cirium.
Thousands of passengers were seen outside the terminal and the surrounding area in videos posted online after the terminal shut for several hours. Emergency foil blankets were distributed to some of the passengers who were waiting in the cold, social media pictures showed.
In a separate incident earlier on Friday, London police carried out a controlled explosion near the US embassy in south London after discovering a suspect package. Police later said they believed it was a hoax.
New Bangladeshi tourism initiative empowers marginalized Indigenous groups
- BRAC’s Othiti program helps uplift rural communities and their traditional skills
- Pilot program is underway in Rajshahi district near the Bangladesh–India border
DHAKA: A new initiative by Bangladesh’s largest development organization is fostering community-based tourism in remote rural areas to empower Indigenous groups and help preserve their cultures.
There are more than 50 Indigenous groups in Bangladesh, most of whom, or about 1 million people, live in the flatland districts of the country’s north and southeast, and in the Chittagong Hill Tracts, bordering India and Myanmar.
Launched in early November, the new tourism initiative spearheaded by BRAC is named Othiti, which means “guest” in Bengali.
The pilot program is underway in Rajshahi district on the northern bank of the Padma River, near the Bangladesh–India border.
“We started the journey of Othiti from Rajshahi. Tourists rarely visit this part of the country, but it is very rich, both culturally and historically. Starting from the mighty river Padma, there’s a lot of natural beauty over there,” Asif Saleh, BRAC executive director, told Arab News.
“We will not be confined within Rajshahi. There are plans to expand this tourism project in other parts of the country … in places like Sundarbans, Chottogram Hill Tracts, Cox’s Bazar. We will try to connect tourists particularly with the Indigenous communities of these areas to experience their traditions, culture, and customs. If tourists can experience the diversity of these areas, they can connect with them in a different way. It will make people prouder of the rich history and culture of our country.”
The project involves rural youth, students of the Rajshahi University, whom BRAC has employed as part-time guides to introduce visitors to their customs and traditional livelihoods.
“We have built a relationship of trust and reliability with these communities. We hope that tourists will become interested in the culture and customs of the Indigenous people, and have a better understanding and empathy towards them,” Saleh said.
“Our Othiti aims for the sector’s development as well as employment for the (local) people, which will benefit these communities … We began this project as a social enterprise. We may incur loss initially for many years, but ultimately, if the sector develops, it will attract many people.”
Indigenous communities in Bangladesh have been struggling with access to education, healthcare, and jobs. Many live in forest areas with inadequate infrastructure. Poverty and unemployment levels among these groups are much higher than among the non-Indigenous.
Moutushi Biswas, a BRAC consultant, said a number of initiatives under the Othiti program are meant to uplift the communities and their traditional skills.
For example, introducing tourists to the Premtoli village of potters helped increase demand for their earthenware and work.
“While visiting the pottery community, tourists are experiencing the craftsmanship of potters who have been engaged in this for many generations. They can experience it by themselves, making clay pots under the guidance of a traditional potter. It’s a very unique experience,” she said.
“This initiative is also strengthening the abilities of local communities … The locals who work with us are very enthusiastic about this. We are receiving huge cooperation from them.”
For Happy Soren, a 25-year-old student and Othiti guide, having tourists visit was not only strengthening the village’s economy but also helping raise awareness about her community.
“The tourists want to know our customs and religious beliefs. They want to know the reasons behind the special patterns and paintings on our houses … Our village becomes very festive when they visit us,” she said.
“We believe the tourists who experience our culture and heritage will play a role in developing our village after they go back to their own places and work. They will stand by our people.”
Top court intervenes in New Delhi pollution crisis as respiratory cases spike
- Number of patients with respiratory diseases has increased two to threefold
- Court orders Delhi authorities to set up checkpoints, prevent entry of commercial vehicles
India’s top court intervened on Friday to request policing measures in New Delhi to contain severe air pollution that over the past week has led to a surge in hospital admissions for respiratory diseases.
Residents of the Indian capital again woke to a thick layer of toxic smog, with an overall Air Quality Index reading of 373, or “very poor,” according to the Central Pollution Control Board.
While conditions have slightly improved since Monday, when a medical emergency was declared with pollution reaching the “severe plus” AQI score of 484, the prolonged crisis prompted the Supreme Court to order the central and local governments to introduce new measures to contain it.
The court said during Friday’s hearing that it was “not satisfied” with the Delhi administration and police efforts to address the pollution and ordered the authorities to “ensure that check posts are immediately set up at all 113 entry points (to the capital)” to stop trucks and commercial vehicles from entering the city.
The move follows the court’s order earlier this week to suspend all construction work in the whole of New Delhi and the National Capital Region.
“It is a constitutional obligation of the central government and the states to ensure that citizens live in a pollution-free atmosphere,” the court said.
As toxic smog has persisted for over a week, Delhi authorities have shut all schools and moved classes online, while half of the government employees have been allowed to work from home.
The continuing crisis is already reflected in a surge of hospitalizations for respiratory disease.
“The cases related to lungs and respiratory problems have significantly risen,” Dr. Nikhil Modi, pulmonologist at Indraprastha Apollo Hospital in New Delhi, told Arab News, adding that the patients coming to the hospital with respiratory issues are “two to three times the normal” amount.
“Especially for those who already have underlying lung disease, the problem can be significant, and if they develop a secondary pneumonia or an infection, then they require emergency admission,” Modi said.
Toxic smog arrives in New Delhi every winter as temperatures drop, trapping toxic pollutants from tens of millions of cars, as well as construction sites, factory emissions, and waste burning. It is aggravated by farmland fires in the country’s northwest and southeast, where farmers clear stubble to prepare fields to plant wheat.
The US Embassy in London returns to normal after police carry out controlled explosion of package
- London’s Metropolitan Police Service closed a road on the west side of the embassy
- “Local authorities investigated and cleared a suspicious package outside the Embassy,” the embassy said
LONDON: The US Embassy in London returned to normal operations Friday afternoon after police carried out the controlled explosion of a suspicious package that was found in the area earlier in the day.
London’s Metropolitan Police Service closed a road on the west side of the embassy out of an “abundance of caution” as they investigated the incident, the embassy said in a statement. The embassy said it had returned to “normal business operations” by early afternoon, although all public appointments were canceled for the day.
“Local authorities investigated and cleared a suspicious package outside the Embassy,” the embassy said. ”Thanks to @metpoliceuk for your swift action, and thanks to all visitors for your cooperation and patience at this time.”
Also Friday, authorities evacuated the south terminal of London’s Gatwick Airport while they investigated a suspicious item found in luggage. Sussex Police said they had sent an ordnance disposal team to the airport as a precaution.
A proposed deal on climate cash at UN summit highlights split between rich and poor nations
- “Our expectations were low, but this is a slap in the face,” said Mohamed Adow, from Power Shift Africa
- “No developing country will fall for this. They have angered and offended the developing world”
BAKU: A new draft of a deal on cash to curb and adapt to climate change released Friday afternoon at the United Nations climate summit pledged $250 billion by 2035 from wealthy countries to poorer ones. The amount pleases the countries who will be paying, but not those on the receiving end.
The amount is more than double the previous goal of $100 billion a year set 15 years ago, but it’s less than a quarter of the number requested by developing nations struck hardest by extreme weather. But rich nations say the number is about the limit of what they can do, say it’s realistic and a stretch for democracies back home to stomach.
It struck a sour note for developing countries, which see conferences like this one as their biggest hope to pressure rich nations because they can’t attend meetings of the world’s biggest economies.
“Our expectations were low, but this is a slap in the face,” said Mohamed Adow, from Power Shift Africa. “No developing country will fall for this. They have angered and offended the developing world.”
Nations are still far apart on reaching a deal
The proposal came down from the top, the presidency of UN climate talks — called COP29 — in Baku, Azerbaijan. Delegations from numerous countries, analysts and advocates were kept in the dark about the draft until it dropped more than a half a day later than promised, prompting grumblings about how this conference was being run.
“These texts form a balanced and streamlined package,” the Presidency said in a statement. “The COP29 Presidency urges parties to study this text intently, to pave the way toward consensus, on the few options remaining.”
This proposal, which is friendly to the viewpoint of Saudi Arabia, is not a take-it-or-leave-it option, but likely only the first of two or even three proposals, said Climate Analytics CEO Bill Hare, a veteran negotiator.
“We’re in for a long night and maybe two nights before we actually reach agreement on this,” Hare said.
Just like last year’s initial proposal, which was soundly rejected, this plan is “empty” on what climate analysts call “mitigation” or efforts to reduce emissions from or completely get off coal, oil and natural gas, Hare said.
Anger at ‘meagre’ figure for climate cash
The frustration and disappointment at the proposed $250 billion figure was palpable on Friday afternoon.
“It is a disgrace that despite full awareness of the devastating climate crises afflicting developing nations and the staggering costs of climate action — amounting to trillions — developed nations have only proposed a meagre $250 billion per year,” said Harjeet Singh of the Fossil Fuel Non-Proliferation Treaty.
That amount, which goes through the year 2035, is basically the old $100 billion year goal with 6 percent annual inflation, said Vaibhav Chaturvedi a climate policy analyst with New Delhi-based Council on Energy, Environment and Water.
Experts put the need at $1.3 trillion for developing countries to cover damages resulting from extreme weather, help those nations adapt to a warming planet and wean themselves from fossil fuels, with more generated by each country internally.
The amount in any deal reached at COP negotiations — often considered a “core” — will then be mobilized or leveraged for greater climate spending. But much of that means loans for countries drowning in debt.
Singh said the proposed sum — which includes loans and lacks a commitment to grant-based finance — adds “insult to injury.”
Iskander Erzini Vernoit, director of Moroccan climate think-tank Imal Initiative for Climate and Development, said “the EU and the US and other developed countries cannot claim to be committed to the Paris Agreement while putting forward such amounts” of money.
Countries reached the Paris Agreement in 2015, pledging to keep warming below 1.5 degrees Celsius (2.7 Fahrenheit) since pre-industrial times. The world is now at 1.3 degrees Celsius (2.3 degrees Fahrenheit), according to the UN
Rich countries call for realism
Switzerland environment minister Albert Rösti said it was important that the climate finance number is realistic.
“I think a deal with a high number that will never be realistic, that will never be paid… will be much worse than no deal,” he said.
The United States’ delegation offered a similar warning.
“It has been a significant lift over the past decade to meet the prior, smaller goal” of $100 billion, said a senior US official. “$250 billion will require even more ambition and extraordinary reach” and will need to be supported by private finance, multilateral development banks — which are large international banks funded by taxpayer dollars — and other sources of finance, the official said.
A lack of a bigger number from European nations and the US means that the “deal is clearly moving toward the direction of China playing a more prominent role in helping other global south countries,” said Li Shou of the Asia Society Policy Institute.
German delegation sources said it will be important to be in touch with China and other industrialized nations as negotiations press on into the evening.
Analysts said the proposed deal is the start of what could likely be more money.
“This can be a good down payment that will allow for good climate action in developing countries,” said Melanie Robinson, global climate program director at the World Resources Institute. “There is scope for this to go above $250 billion if contributors decides to come on board.”
Rob Moore, associate director at E3G, said that whatever figure is agreed “will need to be the start and not the end” of climate cash promises.
“If developed countries can go further they need to say so fast to make sure we get a deal at COP29,” he said.
