Still No Attraction With The PM Tax Amnesty Scheme
As per latest reports, the PM tax amnesty scheme has only managed to attract revenue worth Rs.450 million in taxes. This figure of Rs.450 million is drastically low compared to a high revenue target set by the Federal Board of Revenue (FBR).
According to Shahbaz Rana in Express Tribune, the FBR has maintained a distance with the federal cabinet and parliamentarians in this regard. FBR sources further state that the performance so far is below par and there was no substantial response to the Prime Minister`s late night Television address to the country.
It is pertained to mention here that another tax amnesty scheme was introduced by the former prime minister Shahid Khaqan Abbasi which could not achieve its target but remained relatively successful with tax revenue of Rs.124 million. The scheme in question faced severe criticism from opposition members mainly PTI at that point in time.
As of now, the incumbent government`s scheme has only been availed by 250 people compared to a number of 84000 back in PMLN`s tenure.
Tax Amnesty Scheme
It was last month in May when the incumbent government decided to launch a Tax Amnesty Scheme with a subsequent Asset Declaration Ordinance 2019. The said scheme allows the legalization of Assets, Foreign Currency, Undisclosed Sales and “Benami Transactions” for the declarant.
The arguably attractive scheme offers declarants to declare their assets with a tax percentage ranging from 1.5% to 6%.
The recently appointed chairman FBR, Shabbar Zaidi appeared before the National Assembly Standing Committee in order to answer queries pertaining to the scheme.
As published by the Express Tribune, Zaidi was of the view that businessmen are still weighing in whether to opt for the scheme or not.
Businessmen are usually intimidated by the Federal Board of Revenue on a day to day basis. As per reports and opinion of the business community, they want to pay their due taxes but are afraid of getting entangled by the revenue authorities.
With the deadline approaching soon, FBR is yet to witness an accelerated response by the business community at large.