KARACHI: The business community welcomed the tax amnesty scheme announced by the government for non-taxpayers on Thursday, the first day of the New Year.
The government announced the scheme to get black money of up to Rs50 million whitened with the payment of just one percent of the amount.
Younus M Bashir, president Karachi Chamber of Commerce and Industry (KCCI), told The News that the government had addressed the issue of those traders who were not willing to be filers after the announcement of 0.6 percent withholding tax. “It is their duty to pay taxes,” he said.
The KCCI president said it had become a part of the culture of the country to not pay taxes, as the tax regime was complicated, and without any amnesty for the filers. Instead, incentives and amnesty was announced for the non-filers only. “Amnesty should also be announced for the filers so that they also get their black money, if any, whitened,” he said.
Even if there is no amnesty for the filers or non-filers, he said, everybody should pay the taxes.
Mian Muhammad Adrees, former president Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the tax relief scheme was long awaited by the business community. He said the tax relief policy has been devised with the consent of the business community, who are the real tax payers. “This scheme will bring a revolution in economy of Pakistan,” he added.
Adrees further said this was special tax treatment, an important measure for broadening the tax net by ensuring contribution by the evaders. He further said some other countries also followed such schemes for enhancing their tax revenue.
After the implementation of the tax relief scheme, the income of the exchequer as well as the tax net would increase. He further explained that this scheme would provide a level playing field to the business community and new investment would flourish.
Zulfiqar Thaver, President Union of Small and Medium Enterprises (Unisame), said it was a healthy scheme and he liked it, as it would bring the money back from abroad. He said the scheme of whitening Rs50 million at the rate of one percent tax was a good one compared to even whitening it through havala (money laundering) and getting dollars against rupee cost 2.5 percent. “Getting it whitened through havala has been in practice for years,” he said.
There was a lot of money with the people, and only 20 to 30 percent retailers accepted credit cards etc, while others did not even bother to provide receipts. The SMEs had saved some money through avoiding the taxes, but the benefit would also go to the big mafia, who earned a lot more money and never declared it, he said.
Small traders who strongly opposed 0.6 percent withholding tax on bank transactions have also welcomed this scheme.
Atiq Mir, chairman All Karachi Tajir Ittehad, said the amnesty scheme was a good effort by the government, which would increase tax collection. “Though Rs100,000 or more was even big amount for small traders, they will get the money whitened, which was a good sign,” he said.
He said several traders had also become non-filers because of the complication of the tax regime, and with this scheme they would be comfortable with the tax submission at least for the next three years. “This will also increase flow of money in the market,” he said.