Launch of tax amnesty scheme delayed

The tax amnesty scheme of the Federal Board of Revenue (FBR) requires improvements to more appropriately cover all aspects of documentation and legalisation of un-explained source of assets and income. A senior official of the Finance Ministry said here on Thursday that launching of the tax amnesty scheme has been delayed. The scheme was scheduled to be launched from November 1, 2012, but now has been delayed for further improvement.
Official said that an amnesty scheme is a major exercise and requires approval either at the level of Economic Co-ordination Committee (ECC) or the Cabinet. In reply to a question about IMF concerns over the proposed scheme, he said that international bodies usually oppose such schemes, but Pakistan has its own viewpoint based on domestic circumstances and prevailing tax culture in the country.
The initial plan was that the scheme would be launched in October 2012 and those availing the TRS, 2012 would pay Rs 40,000 in the first month for registration with the tax department. While those availing the scheme in the second month would pay Rs 50,000 and those availing the scheme in the third month would pay an amount of Rs 60,000. It was also proposed that in case the scheme was availed in the first month the 'investment tax' of one percent would be paid for legalisation of assets, in the second month 1.25 percent and in the third month 1.5 percent tax would have to be paid.
Under Tax Registration Scheme (TRS)-2012, a "registered non-filer" and "unregistered non-filer" with multiple bank accounts, or having undertaken foreign travel or residing in expensive localities or having utility bills of more than Rs 10,000 per month or owning immovable assets feels that he is not liable to registration, may file a representation in prescribed form with reasons and evidence of objection by the deadline before the Commissioner Inland Revenue concerned who, after a hearing, shall dispose of the same within seven days of its receipt, the official said. The FBR's data reveals that 2.3 million do not even have the National Tax Number (NTN) and were not paying a single penny to the national exchequer and 1.8 million non-filers of income tax returns making a total of 4.1 million people would be main target of the two schemes.