National Board of Revenue (NBR) Chairman Abdur Rahman Khan has stated that a limited scope for legalizing undisclosed income—commonly referred to as black money—is being proposed as an “exit route” for individuals wishing to bring such funds into the formal economy.

Addressing the issue, he clarified that the proposal aims to help individuals who, for various reasons, have kept money unreported over the years. However, he emphasized that this is not a move to endorse the act of hiding income.

Earlier, Economic Advisor Salehuddin Ahmed remarked that if such an opportunity were to be offered, it should come with a significantly higher tax rate than in the past. “We’re not claiming this is an ideal initiative,” he noted.

Abdur Rahman Khan also mentioned that the previous provision to legalize black money by paying a 15% tax was scrapped after the new government took office. Another provision, which allows for immunity from questioning if one buys land or property while paying a slightly higher tax, is set to expire on June 30. “We have not extended this facility either,” the NBR chairman added.