If the recently announced tax amnesty scheme generates $4-5 billion, that will be enough to reduce the government reliance on foreign borrowing, boost foreign exchange reserves as well as create space for reforms. This was stated by former finance minister Dr Salman Shah who further maintained that 4 to 5 billion dollars will bring economic stability to some extent. He added that the government through the amnesty scheme has attempted to reform the tax system, boost foreign exchange reserves and improve the balance of payment situation. There is a greater chance of success of this scheme as opposed to previous ones as there is world pressure on Benami and offshore account holders and many people may opt to take advantage of the scheme.
However the Finance Ministry officials expressed pessimism about the outcome of the amnesty scheme saying it lacks homework and professionalism. The scheme may benefit a few individuals and generate a few million dollars, which is not going to bring any positive impact on the economic situation, they added.
Ministry officials added that the tenure of the government was expiring soon and people may adopt a wait and see policy. Chairman Pakistan Tehreek-e-Insaf (PTI) has already announced he would not accept the scheme if his party forms the next government.
Former economic adviser to finance ministry Ashfaque Hasan Khan said that the tax-amnesty scheme would fail just as all past amnesty schemes had failed. He added that the scheme is an attempt to whiten black money, which is an insult to the genuine tax payers. Former Finance Minister Dr Hafeez Pasha said that it is too early to comment on the success or possible outcome of the amnesty scheme. On April 5, 2018, Prime Minister Shahid Khaqan Abbasi announced tax-amnesty scheme to incentivise the declaration of previously undeclared local and foreign assets and the repatriation of assets held offshore.
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