Annual income tax returns to be filed;
PM’s approval sought
ISLAMABAD: The government has prepared a scheme to whiten the black money, as traders have agreed to file their annual income tax returns.
In this regard, a joint package was reached between the Federal Board of Revenue (FBR) and the traders’ representatives after many rounds of talks from July to December 2015. The package has been sent to the prime minister for approval.
The package will be announced soon after its approval. The News has learnt that the FBR will announce a three-year scheme in the shape of notification with the approval of this package by the premier.
If the non-filers show Rs10 million working capital in annual tax returns, then their turnover will be considered as Rs30 million. They have to submit 0.5 per cent (Rs150,000) tax on Rs30 million.
While the next year, the same taxpayers have to pay tax with an increase of 25 per cent on the same turnover and in the third year they will have to pay tax on the same capital which is considered as Rs30 million with an increase of 25 percent more.
According to the package, if a taxpayer does not file tax year with the increase of 25 per cent on his turnover under the tax formula then his name will be removed from that scheme from that day.
The trader who shows his new working capital in the tax returns will be considered three time turnover and he will have to pay 0.5 per cent tax in the first year. So in this way the illegal money will be made legal.
