Tax amnesty scheme fails despite extensions

Only 10,000 traders have filed their income tax returns so far, NA body informed

ISLAMABAD - The government has failed to achieve the desired results from the tax amnesty scheme results despite extending it twice, as only 10,000 traders have filed their income tax returns against the tall claims of the government to bring 1 million non-tax filers into the tax net. Federal Board of Revenue (FBR) Chairman Nisar Khan Thursday informed the National Assembly's Standing Committee on Finance and Revenue that as many as 10,000 traders have availed the tax amnesty scheme so far. Dr Nafeesa Shah, committee member and PPP MNA, got shocked after knowing the number of traders availing the amnesty scheme as the government had claimed bringing one million traders into tax net. Even MNA of the ruling party criticized the government for its failure to achieve the desired results from the tax amnesty scheme. "We were initially told that one million traders would avail the scheme, while later the number was reduced to 2,50,000. But the actual result is before us," the government MNA added. The government would again increase withholding tax on banking transaction to 0.6 percent for the non-filers, he said. The committee decided to hold detailed briefing on the tax amnesty scheme in its next meeting. The PML-N government introduced tax amnesty scheme, which was effective from February, and extended it twice, first till March 15 and then till the end of current month.
Abdul Hafeez Khan, Director National Accountability Bureau (NAB) briefed the Committee about the implementation status of matter (enquiry) forwarded by National Bank of Pakistan with regard to NBP Bangladesh scam. He said that Executive Board of NAB in its meeting held on March 22 had decided to investigate the subject matter. The Committee recommended that NAB would submit its inquiry report to the Standing Committee after 04 months. It was also discussed in the meeting that presidents and other former executives of NBP would be called in the meeting of Standing Committee. NAB is conducting investigation against some officials of the NBP, who are accused of abusing their discretionary powers in processing and sanctioning credit limits, wilfully avoiding conducting proper valuation of securities offered by borrowers, and causing losses of $185 million to the national exchequer while they were posted at four branches of NBP in Bangladesh.
The Committee decided to constitute 4-member Sub-Committee under the chair of Daniyal Aziz, MNA to discuss the complaints against the professional conduct and delaying tactics of FBR-Customs authorities regarding issuance of clarification on exemption of taxes & duties on LED/SMD lights and Pakistan-Switzerland tax agreement with regard to exchange of information on banking.
Secretary, Civil Aviation informed the Committee that Parliament has constituted a 10 members Committee on the issue of strategic partnership of Pakistan International Airlines (PIA). He further requested that subject agenda may be deferred. The Committee agreed on the suggestion of Secretary, Civil Aviation. Sher Akber Khan, MNA briefed the Committee about the objectives and reasons for proposed legislation regarding an Eradication of Riba Bill, 2015. He said that Pakistan should move towards the Riba free system, which would be according to the Quran and Sunnah. The Committee was informed by the Ministry of Finance & Revenue that subject Bill was already under consideration with steering committee for its finalization. However, the Committee unanimously decided that a recommendation for rapid action on the matter would be sent to steering committee through Ministry of Finance & Revenue.
Meeting was attended by MNAs Daniyal Aziz, Muhammad Pervaiz Malik, Sardar Muhammad Jaffar Khan Leghari, Shahzadi Umerzadi Tiwana, Sheikh Fayyaz-ud-Din, Mian Abdul Mannan, Shaza Fatima Khawaja, Syed Naveed Qamar, Dr Nafisa Shah, Asad Umar, Sher Akber Khan, and senior officers from Ministry of Finance, Revenue, Economic Affairs, Statistics & Privatization, NBP and NAB.

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