Voluntary Tax Filing Scheme for traders launched: government makes desperate attempt towards broadening tax base

Prime Minister Nawaz Sharif on Friday launched ''Voluntary Tax Filing Scheme (VTCS)'' for traders to bring them into the tax net. Addressing a ceremony in connection with "voluntary tax compliance scheme", the Prime Minister expressed the hope that scheme would bring about an era of close collaboration between Federal Board of Revenue (FBR) and country''s trading community. Nawaz said he has always asked Finance Minister Ishaq Dar before and after the election to reduce the tax rate in consultation with business community to the level that is acceptable to traders and they are willing to pay it.
The scheme was announced at a gathering of traders, businessmen and representatives of chambers & trade bodies assembled. The Prime Minister also congratulated the FBR team and leadership of traders for holding marathon sessions over last five and half months and coming up with recommendations that formed the core of VTCS.
The Prime Minister stated that the government believes the scheme would help in promoting a culture of tax compliance, broadening the tax net and encouraging traders and business community to declare their income and pay their taxes free of any duress and pressure from any side.
Nawaz stated that the government has saved billions of rupees in LNG-based energy projects, which reflects the fact that it strongly believes in transparency. The Prime Minister asked traders to cooperate with the government for the development of the country and directed FBR to simplify the tax system and make public-friendly policies.
The Prime Minister also stated that they want good relations with Pakistan''s neighbours and would overcome the challenges including terrorism, and energy shortage at every cost. Law and order situation in Karachi has improved a lot due to the steps taken by the government, he added.
Finance Minister Ishaq Dar said the VTCS will be presented in the parliament to provide a legal cover to beneficiaries, adding that everyone except parliamentarians can benefit from the scheme. He said those convicted of terrorism, money laundering and under anti-narcotics laws also cannot benefit from this scheme.
Prime Minister''s Special Assistant on Revenues, Haroon Akhtar Khan, said Pakistan''s economy is moving from stable to vibrant as a result of prudent policies. He said SROs worth 223 billion rupees have been abolished. Now SRO can only be issued with the approval of an elected Parliament. He described the VTCS as a historic achievement as government and traders had covered a distance to make it a success by arriving at a point of consensus on issues facing the business community.
Chairman FBR Nisar Muhammad Khan presented salient features of the Voluntary Tax Compliance Scheme. The scheme is applicable to both non-filers and filers. The Chairman said the scheme had been prepared after many detailed discussions and deliberations spread over multiple rounds with representatives of chambers and trade bodies across the country.