RITBA demands a new tax amnesty scheme

Rawalpindi Islamabad Tax Bar Association (RITBA) on Wednesday demanded a new tax amnesty scheme which will help government bride the growing deficit.

The scheme announced by the former government was not availed by many due to political uncertainty, cases against top government functionaries, the holy month of Ramadan, Eid, and lack of awareness, it said.

The former scheme was availed by 55225 people declaring assets worth 1769 billion rupees which is a very small part of the undeclared wealth at home and abroad, said Zahid Shafique, General Secretary of RITBA.

He said that the new government enjoys the confidence of masses who would happily participate in the new amnesty scheme which should be launched without delay.

Zahid Shafique said that expats should be given incentives for transferring funds which will discourage illegal transfers and help government earn around twelve billion dollars annually.

He said that FBR harasses business community to achieve targets necessitating abolishing clause 214-C. The Finance Act 2018 increased Sales Tax by one percent which should be reversed to given relief to the masses while the limit of taxable rental income should be four lakhs or above.

Under Income Tax Ordinance 2001 1.252 percent income tax is applicable on some sectors while other sectors enjoy a discount of 0.80 percent which should be uniform to avoid evasion which will also trigger documentation of the economy, he said.

He said that the people having business capital up to one million and an NTN number but avoid filing returns should be given an incentive to pay Rs10,000 for the last two years excluding Withholding Tax and 25 percent extra tax for 2018 to avoid an audit.

RITBA hoped that the Finance Minister would consider proposals so that funds could be raised locally avoiding international lenders.