ISLAMABAD - The government is likely to table the drafts of tax amnesty schemes, Investment Tax Scheme (ITS 2012) and Tax Registration Enforcement Initiative 2012 (TREI 2012), in National Assembly in next session for approval.
The officials informed The Nation that government has planned to table the drafts of tax amnesty schemes in the National Assembly in next session (to be started from December 3) for approval, which have already been approved by the federal cabinet in last week. The tax amnesty schemes are likely to be effective during the third quarter (January-March) of the ongoing financial year 2012-2013. The schemes will be presented to parliament through a bill after vetting by the law division.
Under the proposed tax amnesty schemes, the evaders could whiten their black money and assets at home and abroad within three months against a nominal one-time charge. The government has planned to broaden the tax base of the country with the introduction of these tax amnesty schemes.
The government has planned to generate Rs 100 billion through Investment Tax Scheme (ITS 2012) and Tax Registration Enforcement Initiative 2012 (TREI 2012), which would help the Federal Board of Revenue (FBR) to reach the annual tax collection target of Rs 2381 billion during the ongoing financial year 2012-2013. The FBR is facing massive shortfall of around Rs 90 billion during the first four months (July-October) of the current fiscal year that has compelled the government to introduce the tax amnesty schemes to generate additional revenue to meet the annual target.
According to the proposed schemes, the government has set up a limit of up to Rs 5 million for both incomes and assets that can be whitened by availing these schemes. The government will not ask the source of income and previous tax cheaters will be considered to have a clean slate as long as they are honest taxpayers in the future. FBR has identified 3.1 million people who are evading taxes, and, out of them, at least 1.3 million are expected to be brought into the tax net.
According to the reports, for up to Rs5 million, the FBR will allow clearance of cash by paying Rs40,000 in the first month, Rs50,000 in the second month and Rs70,000 in the third month. Any amount above Rs5 million will be cleared by paying one per cent of the total amount in the first month, 1.25 percent in the second month and 1.75 percent in the third month.