People rush to register assets as deadline for Amnesty Scheme approaches
- The capacity of the system isn’t that compatible and distortions appear on the system several times because it gets overloaded.
- People don’t have sufficient information about the filling of forms despite taking guidelines, says taxation expert Ashfaq Tola.
- No extension will be given to tax dodgers in the tax amnesty scheme.
- The government won’t be able to give an extension in the deadline of the scheme because of its commitments with the IMF.
- FBR ran an awareness campaign about the information of the tax amnesty scheme through pamphlets and ads.
- The number of tax filers rapidly increasing due to widespread awareness about the benefits of the scheme.
Prime Minister Imran Khan has repeatedly asked the tax dodgers to register their assets under the tax amnesty scheme. The scheme will help improve the foreign exchange reserves of the country and will also increase the number of tax-filers. Pakistan needs to increase its tax net, especially through direct taxation. In developed countries, 80 to 90 percent of taxation is achieved through direct taxation.
Kamran Khan in his show at Dunya News asked the tax experts about the expertise to guide the people to register for the tax amnesty scheme and also asked about the sufficient staff to guide the people on how to become tax filers by declaring their undeclared assets.
Abdul-Qadir Memon who was the guest in the show replied that if all the lawyers get to work constantly for the remaining days before the deadline of the tax amnesty scheme still we won’t be able to assist all the applicants.
Also, the capacity of the system isn’t that compatible and distortions appear on the system several times because it gets overloaded. He further said that we should undertake it as a national cause and we must try to cover up the latest by the last date of June 30.
FBR awareness campaign about the tax amnesty scheme
FBR ran a public awareness campaign in which pamphlets and ads with the information about tax amnesty schemes were distributed. Chambers of commerce and trade organizations were also given awareness about the details of the scheme but still, people are unable to fill up their forms properly.
What should be the remedy for the government to complete the task within the given time-frame?
There exist two possibilities as far as the solution is concerned. One can be the extension in the deadline for Tax Amnesty Scheme so that people will get more time to come under the tax net. But it might not be a possibility because of the international commitments that Pakistan has made. Tax Amnesty Scheme is not in accordance with the terms and conditions of IMF in view of the recent monetary agreement between Pakistan and the international lender.
Ashfaq Tola who is an expert in tax matters said that people don’t have sufficient information about the filling of forms and despite taking guidelines they are unable to fill them correctly so we are compelled to fill the forms for them. However, both the guests did not conclude any out of the box solution for the early and timely registration under the tax amnesty scheme.
Under the ‘Assets Declaration Scheme’ Pakistanis including expatriates can give a legal cover to their assets by paying taxes at a set reduced percentage until June 30. The government aims at improving the tax culture within the country through this opportunity and this will also promote the documentation of undocumented economy.