ISLAMABAD, Nov 14: The federal cabinet approved the much talked about tax amnesty schemes on Wednesday to allow evaders to whiten their black money and assets at home and abroad within three months against a nominal one-time charge.

A cabinet meeting presided over by Prime Minister Raja Pervez Ashraf approved the move to legalise the enormous tax-evaded money and also granted blanket exemptions to tax dodgers from investigation by the National Accountability Bureau and the Federal Investigation Agency.

The schemes will be presented to parliament through a bill after vetting by the law division.

Officials believe the schemes will bring 3.1 million more people into the tax net, including frequent travellers, owners of multiple bank accounts and those living in posh areas but not figuring on the tax roll.

They will be able to benefit from the Tax Registration Enforcement Initiative and the Investment Tax Scheme, 2012, within three months.

At the same time, the cabinet approved proposed amendments to tax laws allowing the Federal Board of Revenue to also decide cases of arrears stuck in courts through alternative dispute resolution committees. More than Rs256 billion revenue was stuck in court cases, a tax official said, adding that after approval of the amendment by parliament the FBR could resolve these cases within 45 days in the ADRCs.

Under the proposed schemes, those declaring their concealed assets can whiten them by paying a paltry sum.

The schemes allow a tax evader to pay Rs40,000 to legitimise assets worth up to Rs5m in the first month, those availing the offer in the second month will have to pay Rs50,000 and in the third month Rs70,000.—Staff Reporter