ISLAMABAD - The government-in-waiting led by Pakistan Tehreek-e-Insaf (PTI) on Saturday ruled out the possibility of giving further extension to the tax amnesty scheme, which is expiring on July 31.
PTI’s economic wizard Asad Umar, who is expected to become next finance minister, has said that they were already opposing the tax amnesty scheme.
He further said that PTI would not give any extension to the tax amnesty scheme, which has not generated enough reserves for the country.
The previous government in April this year had announced two tax amnesty schemes, namely, Foreign Assets (Declaration and Repatriation) Ordinance, 2018 for undisclosed foreign assets and Voluntary Declaration of Domestic Assets Ordinance, 2018 for undisclosed income and domestic assets.
Before June 30, around 55,225 declarations had been filed in which declared value of foreign assets is around Rs577 billion and that of domestic assets is around Rs1,192 billion.
Declarants had paid around Rs97 billion out of which around Rs36 billion was collected on foreign assets and 61billion on domestic assets. In addition, $40 million had been repatriated.
The pace of disclosing hidden assets under the amnesty scheme were slowed down after getting one month extension till July 31.
In an informal talk with the media, Umar said that government would decide in next one month either to approach International Monetary Fund (IMF) or to consider other alternative plan.
The previous government should have been gone to IMF for bailout package six months before keeping in view the situation of external sector of the economy, he added.
Talking about loss-making public sector entities, Umar said that PTI was planning to run these entities including Pakistan International Airlines (PIA) under sovereign club in a professional way.
Similarly, the PTI would establish economic advisory council and business advisory council comprising leading economists and businessmen.
These councils would be headed by prime minister instead of finance minister, he added.