Traders laud voluntary tax scheme

The Business community of Southern Punjab welcomed the Voluntary Tax Compliance Scheme for registration of non-filer traders, terming it a good move to help broaden tax net and improve revenue collection in the country. President of Multan Chamber of Commerce & Industry (MCCI) Fareed Mughis A Sheikh said, "Voluntary Tax Compliance Scheme shows that the government believes in resolving issues with understanding and consultation with all the stakeholders and this spirit will take the country forward on the path of progress and prosperity,"
He lauded the resolution of a long-standing dispute between the government and the trade bodies over the issue of taxation and said all the stakeholders, who played a part in that regard, deserved appreciation. Fareed Sheikh said that the main reason for tax evasion in Pakistan was the complicated tax system that discouraged many potential taxpayers from coming into the net. He expressed the hope that the voluntary tax compliance scheme would have a positive impact as it would encourage documentation of the informal economy by allowing non-filing traders to regularize their undeclared working capital up to Rs 50 million by paying a nominal 1 percent tax for the tax year 2015.
Withholding tax of 0.6 percent on banking transactions had become a highly controversial issue between the traders and the government and the scheme would end the deadlock, he added. "Some countries have also announced similar amnesty schemes for increasing tax revenues. Considering the low tax revenue collection, it is a good measure to discourage unhealthy trends like money laundering and sending money through havala," he added. Fareed Sheikh said, currently there were hardly one million taxpayers out of the total population of over 190 million. The scheme would improve the country's tax-to-GDP ratio.
"Another advantage is that traders would be exempted from audit for four years and non-filers should take maximum benefit of it," he added. Mughis said the congenial atmosphere developed would help take the country forward on the path of progress and prosperity.