PESHAWAR: People from all walks of life including senior leaders of Sarhad Chamber of Commerce and Industry (SCCI) and economic experts here Friday highly welcomed tax-amnesty scheme and termed it a very positive step of the Government to bring tax evaders under tax net.
They said the new income tax reforms package coupled with tax-amnesty scheme announced by the Prime Minister, will immensely help bring non-taxpayers and tax evaders into tax-net besides broaden the revenue base of the country where only 1.2 million people out of the total population of 207 million pay taxes.
Fawad Ishaq, former President SCCI told APP said the new tax amnesty scheme was a right step taken by the Government to bring tax evaders under tax net besides enhancing the country’s revenue base.
He said increasing tax base and revenue generation was imperative for provision of better economic and social services to people.
Pakistan needed such type of amnesty scheme because people transferred their money abroad due to terrorism and poor law and order situation in the past. The law and order situation is now fully restored in the country and people can bring their money back by taking full advantage of the new scheme.
Under this scheme that would be available till June 30, 2018, local and foreign assets in shape of cash could be whitened by paying 5pc and 2pc penalty respectively, on undeclared assets. The amnesty scheme has also provided a facility of one-time payment of 3pc penalty for whitening of non-cash assets.
The foreign countries are also checking stiff laws against those people, who purchased property in their countries, and to avoid such laws, an excellent opportunity was available for all such people now to bring their money back and play constructive role in the country’s development.
“One of the main reasons of tax evasion is high rate of income tax and this issue was almost resolved in the new tax reforms package,” Fawad maintained.
The SCCI leader also appreciated reduction of tax-rate on local and foreign assets in shape of cash and urged for reduction in properties’ transfers fee in order to give boost to real estate business. He expressed the optimism that the government would further facilitate private sector to promote infant industries.
Dr Yousaf Sarwar, former SCCI President also welcomed the new tax amnesty scheme and termed it a good opportunity for all those people, who shifted money abroad to take advantage of it.
“It is not for the first time that the government has announced tax amnesty scheme, as in the past, country's economic wizards had already given the same kind of solution to overcome economic woes,” he maintained.
He said once the tax based is broadened to the required levels, the country will get rid of such amnesty schemes in future, saying the good intention of the present elected Government should not be considered wrongly.
Sarwar suggested a comprehensive economic package for industries of KP and Fata in the wake of CPEC so that infant industries can grow here with fast pace.
The SCCI leader said it was a good opportunity for all those having undeclared dollar accounts in foreign countries to declare the same and whiten the money by paying only 5% of the undeclared dollar amounts.
Assistant Professor, Muhammad Naeem also welcomed the amnesty scheme and said anything that ensures relief to existing taxpayers and bringing non-tax payers under tax-net should be welcomed by all, instead of making unnecessary criticism on the government.
“Things went wrong when such kinds of positive schemes were politicized instead of looking it in its true spirit,” he remarked.
Naeem said the new package would help generate additional revenue for the country and highly lauded the decision of considering Computerized National Identity Cards (CNIC) of 120 million citizens as their national tax numbers.
Economics and financial expert Sumbul Riaz also welcomed the amnesty scheme and praised efforts of the Federal Government to bring tax evaders under tax-net because it was need of the hour.
“There are no two opinions about importance of such schemes as the existing taxpayers would also be benefited because of increase of number of new taxpayers, the older ones will be getting more respect and prestige by the government,” she maintained.
The decision of exempting persons with annual income of up to Rs 1.2 million from income tax, use of technology for tax payer identification and setting up of comprehensive data-base to monitor the financial transactions of every citizen was highly commendable.
Sumbul said it was the prime duty of all citizens to pay due taxes necessary for running of the affairs of government, saying when wealthy people did not pay taxes, then the government had to go for indirect taxation, which burdened the common people.
She said there was no harm to allow those people having assets under offshore companies to repatriate their assets by paying the announced penalties.
She said such practice would immensely help increase the country’s tax net and the received money could be used on infrastructure development, provision of health and education services for benefits of general public.
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