Although the amnesty scheme will generate revenue and a step forward for documented economy, two percent rate for whitening all untaxed income is unacceptable for genuine taxpayers, said former finance minister Shaukat Tarin here on Saturday.
Talking to Business Recorder after closing first session of Business Leaders Conference-2012 organised by Institute of Cost and Management of Pakistan (ICMAP) at local hotel here, he termed the launch of amnesty scheme at such nominal rate as unjustified, saying the rate for whitening all untaxed income should be rationalised to pacify the agitation of genuine taxpayers, who were presently paying 20 percent of earnings in taxes.
"As far as my opinion is concerned, I am not favouring the amnesty scheme as such schemes in past have failed to yield fruits for the country," he said. Moreover, he said the Federal Board of Revenue (FBR) had detailed history of some 2.3 million potential taxpayers and urged the authorities to incorporate the said records before granting tax relief to the unregistered persons through amnesty scheme.
Replying to a question, he said the country was facing severe economic turmoil and the next government would definitely go to International Monetary Fund (IMF) for bailout arrangements. Tarin further said he in his tenure as finance minister kicked off a plan for remittances enhancement and added that the incumbent government should improve the plan to get more foreign exchanges through remittances, which had witnessed remarkable growth from 7.5 billion dollars to 14 billion dollars in fiscal year 2008-09.
Earlier, in his keynote address, he held the dictatorship responsible for extermination of public institutions. Moreover, he said the bureaucracy in order to get personal gains was creating hurdles in the privatisation process, which was the only way to make public entities profitable. Discussing on Balochistan, he said the situation in the province had more worsened after the killing of Nawab Akbar Bugti and the issue of missing persons and opined that Balochistan issue was purely political and could be resolved politically.
Meanwhile, Asif Jooma, President Overseas Investor Chamber of Commerce & Industry, said Pakistan was the land of opportunities which must be realised and the potential must be materialised.
Atif Bajwa, President & CEO Bank Alfatah Limited; Sirajuddin Aziz, President & CEO Habib Metropolitan Bank Limited; Hasan Aziz Bilgrami, President & CEO Banklslami Pakistan Limited; Dr Amjad Waheed, CEO NBP Fullerton Asset Management Limited; S M Shabbar Zaidi, Senior Tax Partner, A F Fergusons & Company & former President South Asian Federation of Accountants & ICAP and Irfan Siddiqui, President & CEO, Meezan Bank Limited were of the view that the progress of the financial sector was remarkable.
Other speakers were Muhammad Lukman, CEO National Clearing Company of Pakistan Limited; Zaffar A Khan, Board Member Unilever, SBP, Shell, PCP, IlL, Acumen Fund & former Chairman - Engro, PTCL, KSE, PIA; Nadeem Elahi, Managing Director Pakistan TRG; Muhammad Ashraf Bawany, Deputy Managing Director, Linde Pakistan Limited; Badruddin Fakhri, CEO Galadari Cement (Gulf) Limited & former President South Asian Federation of Accountants; Dr Sunil Gupta, Chief Learning Officer Ideas Consulting & Lifetime Master Trainer; Dr Edward de Bono Creativity Tools and Mohammad Hanif Ajari, Director Supply Chain & Company Secretary Getz Pharma (Pvt) Limited.