ISLAMABAD - The Federal Board of Revenue (FBR) on Friday warned the holders of undeclared local and foreign assets to face the dire consequences who would not declare assets after expiry of tax amnesty scheme from July 1, 2018.

"Last date of the scheme is June 30 2018 that cannot be extended, as FBR do not have any authority to extend scheme. The scheme has been announced under a special law," said Dr Muhammad Iqbal, spokesperson and Member Inland Revenue-Policy of the FBR while briefing the media.  He also warned those to face dire consequences who would not declare assets after expiry of amnesty from July 1, 2018.

"We are getting very good response. It is much better than the responses on the schemes that had been announced in the past." The number of beneficiaries under tax amnesty scheme is increasing every day, he informed.

However, Iqbal did not disclose the figure of amount that has been collected so far under the current tax amnesty scheme. "Don't insist on the figures, and hopefully by next week we would disclose it," the FBR spokesperson said and added that amount collected under the scheme would be the part of the FBR's normal collections.

The previous PML-N government had announced tax amnesty scheme to declare local and foreign assets by paying nominal tax.

The scheme became effective from April 10 and will run till June 30, 2018. Earlier at the start of the scheme, people did not take interest to take benefit from the amnesty scheme, as only few thousand people have declared their assets.

The business community has called upon the government to give at least one month's extension in tax amnesty scheme so that maximum number of business community and other people could take benefit of it.

However, the government had clarified that no extension would be given under the tax amnesty scheme.

Dr Iqbal said that Pakistan had already signed 'Multilateral Convention on Mutual Administrative Assistance in Tax Matters' under the auspices of Organisation for Economic Cooperation and Development (OECD), which is the most powerful instrument against offshore tax evasion and avoidance.

"By the start of November 2018, Pakistan can easily trace them, as the convention provides all forms of administrative assistance in tax matters including exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection," he maintained.

Talking about Financial Action Task Force (FATF) concerns regarding the scheme, he said that FATF's concerns were regarding money laundering and the government has conveyed to it that there is room for criminals and terror financers in this amnesty scheme.

He said the FBR is taking special measures to simplify the taxation system to facilitate the taxpayers and the board would also introduce single page tax return for the salaried class.