ISLAMABAD - The beleaguered government is seriously contemplating to announce tax amnesty scheme - Tax Registration and Investment Scheme 2012 - in an effort to give legal cover to whiten the black money simply by paying certain rate of tax in a view to generate additional revenue within current fiscal year 2012-13.

Sources informed The Nation on Wednesday that government was considering several options to generate additional revenue within the current financial year 2012-13 in order to reach annual tax collection target, which look challenging from the start of year. Sources further informed that government is likely to announce Tax Registration and Investment Scheme 2012 in next few weeks under which government would collect certain amount of tax and would not ask about the sources of income from the taxpayers.

Under the proposed scheme, one could whiten his black money by only paying tax around 0.8 per cent to 1.2 per cent of his declared income. According to the sources, the government would not only generate additional revenue through this proposed scheme but it would also help in documenting the economy.

It might be mentioned here that government has fixed a challenging revenue collection target of Rs 2,381 billion for the ongoing financial year 2012-13. The Federal Board of Revenue (FBR) had collected Rs218.882 billion during the two first months (July-August) of the ongoing financial year as against Rs232.781 billion collected in the corresponding period last year, reflecting a decline of Rs13.899 billion. With the shortfall in the first two months, FBR is unlikely to achieve the collection target of Rs2.381 trillion for 2012-13. Therefore, the government is considering other options to generate additional revenue in the rest nine months (October 2012 to June 2013) to reach the tax target.

FBR and Finance Ministry high officials believed that government could not achieve the desire tax collection target of Rs 2,381 trillion without taking additional step. Apart from announce tax amnesty scheme - Tax Registration and Investment Scheme 2012, sources said that FBR is also working on other options that could help in collecting additional taxes. The FBR is planning to generate additional Rs 60 to Rs 70 billion within the current fiscal year through administrative efforts and controlling the tax evasion/leakages in the system.