Pakistan’s finance bill for the year 2016-17 presented by the government has proposed amendments to clause 23 of income tax ordinance. According to which legal cover will be provided to undeclared wealth held through foreign trust by the nation’s individuals.Vice president of Pakistan’s people party Sherry Rehman questioned the amendments and quoted them as suspicious. She also said that that according to the amendments “foreign trusts” do not come under the definition of “trust”. The suspicion has become evident given the current situation of Panama Papers leak with the prime minister’s family members name listed in it. Though there is no proof that the names listed in those papers are those of people stashing black money or legal account holders. Prime minister’s daughter’s name was listed for holding assets in tax havens.
These measures are widely regarded as a free pass to holders of undisclosed money in foreign accounts and a step that incentivizes tax evasion.Pakistan at present is losing Rs2.2 billion in corruption which is affecting the economy severely. Also the country has very small taxpaying base which makes the situation even more badly.Senator Rehman also said such measures were drain on the nation’s economy and erodes the values of good governance. Pakistan is not the only government that is tackling that panama papers more than half of the nations in the globe have their citizens’ name in it. There are almost 12 countries which have their national leaders directly or indirectly connected to it.