Wednesday, November 20, 2019

Amnesty: why different from past ones and why is so exciting…

Featured

Hong Kong: Students movement threatens the next escalation

Possibly it was due to the mediators that worse could be prevented in Hong Kong. The deputies, lawyers and...

Trump said: Sondland is great American now President’s famous ‘U-turn’

President Donald Trump has a history of distancing himself from associates who have found themselves in legal trouble or...

Babri mosque: Indian Supreme Court ruled in favor of Hindus in a dispute over a religious position with Muslims

India's Supreme Court on Saturday ruled in favor of a Hindu group in a long-running legal battle over a...
Muzammil Aslam
Muzammil Aslam
Muzzammil Aslam has over 15 years of experience in the fields of Economics, Equity Research, Business Development and Financial / Capital markets. Worked as Ex- Chief Executive Officer, EFG Hermes Pakistan Limited. Heading brokerage and inter-bank business and company affairs. He was engaged with KASB Securities Ltd. as Head of Business Development from 2004 to 2009 and with JS Global Capital Ltd. as Head of Business Development and Head of Research from 2009 to 2012. Thereafter, he has been managing his own economic research consultancy firm "Emerging Economics Research". Further, his work on economics has been actively pursued by key government institutions. By qualification, Mr. Aslam holds Bachelor of Commerce and Master of Public Administration Degrees from the University of Karachi, MAS Degree in Economics from Applied Economics Research Centre, University of Karachi and Master of Science Degree in Economics from the University of Bath, United Kingdom. Contact: [email protected]

Finally, the amnesty scheme is out. Apparently, amnesty scheme is much awaited and for the first time business communities screaming for amnesty. What is different in this amnesty scheme is real estate asset declaration.

The silent features of the real estate declaration are as follows;

1- If real estate is not declared or parked under Benami name. By paying 1.5X of FBR value the beneficial owner of the property can manage to document it.

Illustration if person had bought property under his wife/cousin/or servant name in the past and if the property fair value is 20mn vs FBR value of 10mn.

The person can pay 1.5% of the 1.5x of FBR value and will be entitled to legalise it. So (10mn*1.5) *1.5/100= Rs225,000 is amnesty amount

2- if the person has already declared the property but at the DC rate. He can magnify the value of property also and entitle to claim white money equivalent to fair value. The formula will remain as above

3- if any person had bought property and declared already five years ago. He can revise the fair value of the property and there will be no tax penalty

The above scheme will be game changer for economic activity. In the last two years the activity in real estate has stalled due to continuous revision in FBR rates and due to dearth of white money availability.

The quantum of property transfers is currently the slowest in last 25 years.

Now those who will avail this facility, they will not only manage or increase their white portions in their wealth statement, but also can sell & receive payment at fair value in his bank account whenever they will decide to sell the property.

Resultantly, it will be much easier for the banks to provide financing of real estate. Extremely positive for Banking deposits, revival of transactions etc.

The additional availability will also likely to channel in stock market. However, the recent depressive mode of the market may stop investors to go aggressively in short run but in medium term, market will benefit.

Muzammil Aslam
Muzammil Aslam
Muzzammil Aslam has over 15 years of experience in the fields of Economics, Equity Research, Business Development and Financial / Capital markets. Worked as Ex- Chief Executive Officer, EFG Hermes Pakistan Limited. Heading brokerage and inter-bank business and company affairs. He was engaged with KASB Securities Ltd. as Head of Business Development from 2004 to 2009 and with JS Global Capital Ltd. as Head of Business Development and Head of Research from 2009 to 2012. Thereafter, he has been managing his own economic research consultancy firm "Emerging Economics Research". Further, his work on economics has been actively pursued by key government institutions. By qualification, Mr. Aslam holds Bachelor of Commerce and Master of Public Administration Degrees from the University of Karachi, MAS Degree in Economics from Applied Economics Research Centre, University of Karachi and Master of Science Degree in Economics from the University of Bath, United Kingdom. Contact: [email protected]

Latest News

Hong Kong: Students movement threatens the next escalation

Possibly it was due to the mediators that worse could be prevented in Hong Kong. The deputies, lawyers and...

US marine demands $ 20 million compensation for his imprisonment in Iran for espionage

A former US Marine is demanding $20 million from the Terrorism Victims Fund. Amir Mirza Hekmati, who holds US and Iranian citizenship, was jailed...

US welcomes the release of two American and Australian hostages from Afghanistan

US Secretary of State Mike Pompeo said his country welcomes the release of hostages including US professor Kevin King and Australian professor Timothy Weeks,...

Mark Esper: We are committed to support Philippines to deter terrorist threats

Washington is committed to supporting the Philippines to deter terrorist threats in the region, US Defense Secretary Mark Esper said at a joint press...

British election campaign overshadowed by a sex scandal cloud on Prince Andrew

Britain's election campaign was overshadowed by a cloud of Prince Andrew alleged sex scandal on Monday as Queen Elizabeth's second son faced a backlash...
- Advertisement -

Related News