Public officeholders won’t be able to avail amnesty scheme: Haroon

ISLAMABAD: Barring public officeholders from avail the upcoming amnesty scheme, Special Assistant to PM on Revenues Haroon Akhtar Khan said that the proposed Foreign Asset Declaration Scheme (FADS) would bring home $4 to $5 billion if tax rate is kept low and provided full guarantee, confidentiality and maximum immunity for this scheme.

He said the government was considering presenting this scheme along with money bill on eve of upcoming budget 2018-19 but nothing was so far finalised as separate bills could also be introduced in Parliament. Without full backing of Parliament and consensus, this proposed schemer could not succeed.

“Judges of Supreme Court are reviewing this proposed amnesty scheme and we will take into account their direction. We want to give protection from Anti Money Laundering (AML), National Accountability Bureau (NAB) and FIA laws but offenses like terrorist financing, corruption or drug money will not be protected,” Akhtar said while talking to reporters after a ceremony at FBR for online payment system of all taxes here on Tuesday.

He said all public officeholders including parliamentarians, bureaucrats, judges and others would not avail this upcoming scheme. When asked whether Hassan and Hussain Nawaz will be allowed to avail this scheme, he said that all public officeholders would be barred for availing this scheme.

Citing example of Indonesia, he said that they kept tax rate on higher side that resulted into bringing back $10 billion despite this fact that their foreign residents possessed foreign assets of $360 billion.

To another query, he said that it was not yet decided whether domestic amnesty should be given along with this FADS or not but business community was demanding amnesty scheme for all.

He said that there were figures circulating about $100 billion stashed of assets and bank accounts of foreign resident Pakistanis and if Pakistan got $4-5 billion from the scheme, it would be a big success. The scheme is expected to be announced for a period of 3 to 6 months, he added.

“If we have not given a clear guarantee to the persons availing the scheme and immunity from all laws of Pakistan, the projected amount would not come. If we do no ensure confidentiality of persons availing the scheme, it would not be a success”, he said.

About the rate of tax on which foreign assets are legalised, Haroon Akhtar said that tax rate would be incentive for persons availing the scheme. The rate of tax would be attractive for all categories of businessmen and persons outside Pakistan -- small, medium scale and large size businesses abroad.

Now the proposed scheme, he said, is becoming a reality as most of the work on the scheme has been done. Earlier, it was decided that the scheme would be announced prior to budget. However, there is a strong thinking that the scheme may be announced in budget through finance bill.

He said, “We would ensure that the police, FBR, NAB, FIA would not harass these persons. However, drug money, terrorist financing and money from corruption would not be covered under the said scheme.”

Talking about the upcoming budget, he said that the budget 2018-19 would contain a number of incentives for the business community. “A number of incentives, which we were unable to give to the business community due to revenue constraints, would be announced in this budget,” he said.

About downward revision in revenue collection target for 2017-18, Akhtar said that revenue collection target of the FBR has been changed. Tax machinery is trying its level best to achieve the assigned target of Rs4,013 billion. The realistic revenue collection target for 2018-19 should be Rs4,450 billion, he added.

Referring to recent slide in exchange rate where rupee is depreciated against US dollar in big way bringing it down to Rs116 against US dollar, Akhtar said that it would have inflationary impact and could benefit the incoming government in next fiscal year.