SAARC Chamber of Commerce and Industry senior vice president Iftikhar Ali Malik All has urged the individuals, investors and tycoons to take full advantage of well-designed and well conceived nationwide tax amnesty to declare all assets or cash parked offshore or within the country by the end of the current month with extremely nominal tax.
Highlighting the benefits of amnesty scheme, Malik in a statement on Monday said it would increase tax revenue, enhance foreign exchange reserves, reduce the current account deficit, improve balance of payments, bring foreign capital to Pakistan and enhance economic activities besides bringing investment in lawful network.
He said the new income tax reforms package coupled with tax-amnesty scheme announced by the previous government, will immensely help bring non-taxpayers and tax evaders into tax-net.
He said the Chairman FBR along with his team had also detailed interaction with him and President FPCCI Ghazanfar Ali Bilour and other office bearers a couple of day ago at federal capital and assured full co-operation to facilitate the volunteers. FBR chief further expressed the optimism that the government would further facilitate private sector to promote infant industries.
Malik said the law and order situation was now fully restored in the country and people could bring their money back by taking full advantage of the new scheme. Under this scheme that would be available till June 30, local and foreign assets in shape of cash could be whitened by paying 5-percent and 2-percent penalty respectively, on undeclared assets.
He further said due to its positivity, the duration of the scheme is needed to be extended in order to get maximum benefit from the voluntary asset declaration programme. "The amnesty scheme should be extended till September 2018, the tax filing period to get maximum benefit from the scheme. Countries like Argentina, Brazil, Indonesia, which had introduced such schemes on the same time, had also given eight to nine months," he added.
He said even the caretaker government can extend the period from June 30 to next few months as the scheme is now part of the finance bill. "In financial matters the interim government enjoys powers to take major decisions."
He said another positive aspect of that scheme was that under the scheme, the Computerised National Identity Card (CNIC) number had been declared as the National Tax Number. "People will now be able to use their CNIC numbers to file tax returns," he said.
Iftikhar Malik said the elements opposing tax amnesty scheme and spreading rumours were enemies of Pakistan. He said there was no ambiguity and hidden plan in amnesty scheme as it was protected by the law "Voluntary Declaration Domestic Assets Act 2018" approved by the parliament in favor of the scheme.
"Once the tax based is broadened to the required levels, the country will get rid of such Amnesty schemes in future therefore, good intention of the regime should not be translated wrongly. Anything that ensures relief to existing taxpayers should be welcomed by all and nobody should oppose it," he added.