HYDERABAD: Hyderabad Chamber of Commerce and Industry (HCCI) Thursday termed the four-year tax amnesty scheme announced by PML-N led government for traders a good move as it would help broaden the tax net and improve revenue collection.
One of the main reasons of tax evasion in the country was a complicated system which discouraged many potential taxpayers from coming into the net, HCCI Senior Member, Qayoom Nusrat said while talking to APP on Thursday.
The voluntary tax compliance scheme would have a positive impact as it would encourage documentation of informal economy by allowing the non-filing traders to regularise their undeclared working capital of up to Rs. 50 million by paying a nominal tax of 1 percent for the tax year 2015, Nusrat added.
He expected that the scheme would end the deadlock over 0.6 percent withholding tax on banking transactions between the traders and the government.
It was a good opportunity for non-filing traders to come forward and take full advantage of the amnesty scheme by becoming regular taxpayer as the government had addressed their grievances, he told.
Some other countries had also announced such amnesty schemes for increasing tax revenue and it was a good measure for broadening the tax net because it would ensure tax contribution by many new taxpayers, he said.
Besides, the scheme of regularising undeclared working capital of up to Rs. 50 million at the rate of one per cent tax was also good as it would discourage unhealthy trends like money laundering and whitening money through Havala etc, HCCI Senior Member said.
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