ISLAMABAD - The PML-N government on Tuesday once again extended the deadline of tax amnesty scheme till March 31 after failing to bring large number of traders into tax net.
Finance Minister Ishaq Dar, in a meeting with businessmen, decided to extend date for availing Voluntary Tax Compliance Scheme (VTCS) for traders till March 31, 2016. The concessionary rate of 0.4 percent Withholding Tax on banking transactions of non-filers has also been maintained during this period.
The government extended the deadline of VTCS after it failed to bring a large number of traders in the tax net as less than 3000 traders filed their returns under the scheme. The government at the time of announcing amnesty scheme had aimed to bring one million non-filers traders into tax net under the VTCS. However, the government extended the deadline twice, first up to 15 March and now till March 31.
The government in budget 2015-16 had imposed 0.6 percent withholding tax on banking transactions to widen the tax base of the country. However, the WHT affected the traders, who forced the government to announce an amnesty scheme to facilitate traders. The government had offered the traders to whiten up to Rs50 million worth business capital by paying only 1pc tax. The withholding tax rate was lowered to 0.3pc from 0.6pc on banking transactions until the scheme is effective.
Meanwhile, according to the press statement issued by the Ministry of Finance, a delegation of traders and members of business community had a meeting with Finance Minister Ishaq Dar here on Tuesday. Special Assistant to Prime Minister on Revenue, Haroon Akhtar, MNA Mian Abdul Manan and Chairman FBR, Nisar Mohammad Khan were also present.
The delegation discussed with the minister matters regarding extension in period of concessionary rate of withholding tax and extension in the due date of filing tax returns. They said that in view of numerous requests made by traders’ bodies and other taxpayers, the last date for filing of tax returns may be extended. They also requested consideration for further extension in the period of concessionary rate of withholding tax.
Finance minister on this occasion said that the government fully believed in providing maximum facilitation to taxpayers. In that spirit it was decided to extend the date for filing of income tax returns/statements by individuals and associations of persons to 21st March 2016. While the last date for filing of tax returns for traders under the voluntary tax compliance scheme was extended to 31st March 2016. The minister, in his capacity as chairman ECC, accorded anticipatory approval for extension in the period of concessionary rate of 0.4% withholding tax on banking transactions by non-filers up to 31st March 2016.