The Presidential Ordinance to introduce harsh punishments for hoarders/smugglers of consumer items, edible goods, essential food commodities and masks/sanitizers etc, has been drafted and now been moved to the federal cabinet members for approval. It has been reliably learnt that the ordinance would be approved through circulation among the cabinet members.

After approval of the ordinance through circulation, the ordinance would be moved to President Arif Alvi for promulgation. Presidential Ordinance against hoarders/smugglers would be enforced within the territorial jurisdiction of the federal capital. The items covered under the ordinance include basic food commodities, essential consumer items and edible goods.

The informers would be paid 10 percent of the value of seized items as reward for pinpointing the hoarders under the ordinance. The ordinance has proposed three years imprisonment for hoarders and 50 percent fine/penalty of the value of the seized items. Under the Tax Laws (Second Amendment) Ordinance 2019, the government has already increased penalties on cash currency smuggling, ranging from $10,000- $200,000 and above, up to fine of 10 times of value of currency and imprisonment up to 14 years depending on the amount of currency seized under various categories/slabs.

Penalties were considerably increased for smuggling of dollars, precious stones and jewelry under the said ordinance. Under the Tax Laws (Second Amendment) Ordinance 2019, the FBR had divided currency carriers into various categories.

Under the law, foreign currency up to $10,000 is allowed per person at time of departure from Pakistan, the ordinance proposes to confiscate foreign currency from $10,001 to $20,000. In case of foreign currency from $20,001 to $50,000, it seeks to impose penalty and imprisonment up to two years.

In case of the foreign currency from $50,001 to $100,000, the penalty imposed could be four times of the confiscated amount and imprisonment would be up to seven years.

If the amount of currency seized is over and above $200,000, penalty would be 10 times of the value of currency and imprisonment would be up to 14 years. With reference to the smuggling of precious stones and jewelry, on smuggling of 15 tola gold/jewelry, it will be confiscated and the equivalent amount of penalty could be imposed.

Meanwhile, the actual owners and beneficiary of the items hoarded would be given punishments under the newly drafted ordinance. Tax Laws (Amendment) Ordinance, 2020 has implemented fixed tax scheme for developer and builders and immunity from disclosing source of investment made in projects starting up to December 31, 2020 and completed by December 31, 2022.

Under the Tax Laws (Amendment) Ordinance, 2020, a new schedule i.e. Eleventh Schedule (computation of profits and gains) has also been included in the Income Tax Ordinance 2001 for computation of income and tax payable on project-by-project basis under the head "Income from Business" for developers and builders.

Under the new law, a new scheme has been issued for computation of profits and gains on developers and builders and tax payable thereon under Income Tax Ordinance 2001.

Moreover, detailed procedure has been provided for the developers and builders for availing time-bound exemption from Section 111 (un-explained assets or income) of the Income Tax Ordinance 2001.

Under the Tax Laws (Amendment) Ordinance, 2020, the rate and computation of tax liability of projects of developers and builders in all major cities has been worked out.

According to the ordinance, the government has introduced special provisions relating to developers and builders. The new provisions would be applicable on builders and developers opting to be assessed on their income, profits and gains from projects, which are set up between the date of promulgation of the ordinance and December 31, 2020; and completed on or before September 30, 2022.