Jang Economic Session: New amnesty scheme discouraging for existing taxpayers’

LAHORE: Politics, economy and all institutions in Pakistan are practically working under the doctrine of necessity while all new or previous amnesty schemes fall in the same category while success of the next amnesty scheme relies on use of power.

These views were expressed by the experts in Jang Economic Session on ‘What will be next after another tax amnesty scheme? The panellists were Khurram Shahbaz Butt, Imran Afzal, Dr Yasir Mehmood, Agha Syedain, Amna Ulfat and Pervaiz Hanif while the session was hosted by Sikandar Lodhi.

Khurram Shahbaz Butt said that new amnesty scheme was discouraging for existing taxpayers while previous amnesty schemes failed as Benami assets were not covered in them while in new scheme it was covered.

He said under new amnesty scheme the declared money would be deposited in bank accounts which will improve money circulation while it could be successful by increasing tax rate. He suggested use of power to make the amnesty scheme successful.

Imran Afzal said that amnesty scheme was never a good option but to achieve economic targets it considered good easy approach while there was no method to gauge the success or failure of the scheme.

He said the previous government introduced amnesty scheme in three phases and this scheme is continuity of the previous one. He said previous amnesty schemes were criticised but revival of businessmen trust was needed to make the scheme successful.

He said makeshift arrangement were insufficient to meet economic deficit. Dr Yasir Mehmood said that financial condition of country could not sustain any adventure while regulated system was the need of the hour to correct the economic system. He said amnesty scheme was the need of the hour and assured the public and business community of making the scheme successful to end the difference in act and statements of the government.

Agha Syedain said that amnesty scheme was incentive package for tax evaders while previous government gave five amnesty schemes and now those giving 6th amnesty scheme used to criticise it. He said billion of rupees worth Benami Bank accounts proved that amnesty scheme was required to whiten this money. He believed that Rs270 billion revenue shortfalls would not be managed with the amnesty scheme as there was nothing new in the scheme. He suggested incentives for those who invest in health, education and industry under the new amnesty scheme.

Amna Ulfat said that current rulers realised the real economic issues after coming into power and to resolve them they launched amnesty scheme following doctrine of necessity which they had always opposed. She said system had huge flaws while tax base could not be expanded on fairness while tax evaders get more incentives than taxpayers. She said IMF programme was unavoidable but delay could not avert any of the conditions to avail it. She believed that tax evaders were being offered incentives through amnesty scheme.

Pervaiz Hanif said that before any amnesty scheme government needed to justify it and revive the confidence. He said the FBR performance was disappointing while advantages of the scheme could be increased if government institutions performed well for it. He said the government was justifying its future action against black money by giving the amnesty scheme.