PTI all set to announce tax amnesty: Jawad

Former Chairman FPCCI Standing Committee, Ahmad Jawad said that instead of structural reforms in FBR and going after tax thieves the PTI government is again all set to announce tax amnesty scheme. This tax amnesty scheme will allow taxpayers to legalise their black money again by paying a nominal tax. He said unfortunately Pakistan is the only country in the world where tax thieves are rewarded, while the honest taxpaying class is penalised.
"When sitting in opposition, the PTI had criticised every tax amnesty scheme that the previous PML-N government had introduced; the accusation then was that these amnesties gave a clean chit to tax evaders. While in power, faced with the unmovable mass of Pakistan's tax apparatus, the PTI has decided to launch its own tax amnesty scheme. Faced with a Rs270 billion shortfall in tax collection this fiscal year, it is clear that being in power is teaching the PTI new lessons."
He said the proposed amnesty scheme was aimed at encouraging the tax evaders, as the scheme has nothing to do with the expansion of tax net. Jawad said that to get incremental revenues the government should find a way to introduce tax reforms in the country. Without tax reforms nothing would change and PTI government would keep falling short of revenue he added. He said the government could not meet its revenue collection targets even after two mini budgets.
Jawad said that now again the government's economic wizards have given the same kind of solution to overcome economic woes as new amnesty scheme has opened another loophole in the system in addition to the ones that already exist. Instead of improving administration and tax compliance, the government is showing new ways of tax evasion. He said why an honest taxpayer should pay tax when evaders for the past several years are enjoying different amnesties.
The ruthless waste and plundering of public money by the ruling elite has forced the people to openly defy tax laws.
He said the existing tax system of the country itself is one of the worst expressions of colonial era and the government is not ready to bring a transparent and just system of taxation. He said PTI government is advised to pay some heed to bring tax reforms in the country instead of wasting its energies on useless tax amnesty scheme.
The government would be well-advised not to offer another amnesty scheme. Instead it should work to improve how the FBR works and put a bit more fear in the hearts of tax evaders. One would hope a different route may be chosen, Jawad concluded.