ISLAMABAD: Islamabad Chamber of Small Traders (ICST) on Monday criticized the recently-announced tax amnesty scheme terming it politically motivated.
The decision amounts to punishing honest taxpayers while rewarding the tax cheats which would further weaken the tax compliance and encourage the undocumented economy, it said.
The government should have avoided shortcuts and refrained from laying down arms in front of the tax evaders, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.
The outcome of the fourth tax amnesty scheme of the incumbent government will not be different from the previous ones and it will not be beneficial to the economy, he added.
Shahid Rasheed Butt said that scheme has been announced just before the elections while other political parties have not been taken into confidence, therefore, they have started opposing it which has raised questions about its success.
Moreover, he said, people are not certain that their money would be utilised properly and they are sure that they would avoid punishment for evading taxes which discourage tax compliance.
The business leader said that announcing frequent schemes encourages evasion, therefore, such a scheme should be announced once in a decade.
Pakistan’s best scheme was announced in 2008 while helped the then government to raise Rs 2.8 billion while Indonesia raised 330 billion dollars in just two such schemes.
Indonesia has announced four tax amnesty schemes in seventy years while it has become a routine in Pakistan, he added.
Those Pakistanis who want to retain their assets in foreign countries will have to pay five per cent tax while India charges 45 per cent tax for the same, he said, adding that evaders do not deserve such concessions.
Dr. Sahib, this is not for the country or the people who are unheard and counted for their concerns but to provide a shelter to the looters and the minters who have become the more loved ones to the government.
This scheme should have been challenged in the court of law because it is for a particular community and not in the interest of the people or the country.
It is just a way to whiten the wrong money and could be used for the political interests. The question is why the people have not been given such an amnesty in the power sector where they have been dosed for more than 110 billions along with branding of thieves and responsible for the line losses and to pay with taxes.