F.P. Report
KARACHI: The tax amnesty scheme announced by the government is a revolutionary step which will reduce the burden on the masses and the business community by ninety billion rupees, an FPCCI official said Sunday.
This is a major relief to the masses for which will offset the impact of the inflation for which we are thankful to the government, said Malik Sohail Hussain, Chairman Coordination FPCCI.
The decision will reduce the number of filers by almost five hundred thousand which will be a blow to the tax authorities but it should not be substituted through increasing the scope of withholding tax as it contributes to the poverty, he added.
Malik Sohail Hussain who has also served as Senior Vice President of ICCI said that taxable income was kept below Rs 400001 which was not matching the ground realities which has now been extended to 1200001 which is a laudable move.
He said that less than half a percent of people are paying tax in Pakistan which is unsustainable while 4.7 percent Indians and eighty percent Canadians are paying taxes. The business leader said that government should reduce dependence on indirect taxes and try to expand tax net to finance expenditures and development.
He said that tax on those people who have their assets in foreign countries should be increased to ten percent while existing taxpayers should be given relief. He said that the authorities should also consider adding the total audit cases in the amnesty scheme which are in the courts for years and decades.
Total audit is a tool which promotes corruption, therefore, it merits reconsideration so that business community can play its role in the national progress with peace of mind, he demanded.
APP adds: Lahore Chamber of Commerce and Industry (LCCI) on Sunday welcomed the Tax Amnesty Scheme announced recently by the Prime Minister.
LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said here in a media statement that the scheme was a major breakthrough that would help expand tax net as collection of revenue had always been remained under pressure due to various reasons.
They termed this government’s initiative as mega tax reform and hoped that it would attract more and more people to get registered with the relevant tax collection authorities.
Lahore Chamber’s office-bearers were of the view that government had made reasonable progress at economic fronts and took bold decisions in the larger interest of the economy.
They said that foreign assets were useless for Pakistan but now these could be brought into the country with payment of only five percent tax that would ultimately ensure huge financial benefits to Pakistan.
These foreign remittances would be used for creation of new employment opportunities as well as expansion of local industry on modern lines, they added.
They said that in the past, there was energy crisis and vulnerable law and order situation due to which the people had transferred their assets to other countries, but now the situation had improved substantially and amnesty scheme would help bring those assets back to Pakistan.
Since other countries were putting in place tough policies for foreigners, the amnesty scheme would prove to be a great opportunity for overseas Pakistanis to transfer their assets to their home country, they added.
It was a good omen that the government had also accepted their long-pending demand of giving Computerised National Identity Card (CNIC) number the status of National Tax Number (NTN), they said.
