Dr Iqbal tells traders to take benefit of tax amnesty scheme or get ready for action
ISLAMABAD: Beneficiaries of the Voluntary Tax Compliance Scheme will enjoy the exemptions whereas those who choose not to take benefits of the scheme will have to face regrets, as the Federal Board of Revenue (FBR) has improved and strengthened its system to trace non-taxpayers.
Unveiling the future plans in an interview with Customs Today, FBR Strategic Planning and Reforms, and Information Technology Member Dr Muhammad Iqbal said that doctors, engineers, lawyers and industrialist were not included in the scheme, as it is only for a specific community of traders. He further elaborated that traders, whole sellers and dealers who purchase and sell items but not produce them are included in the scheme.
Dr Iqbal also rubbished the point of view regarding any discrimination against the existing taxpayers, saying that the tax amnesty scheme did not mean to discourage the existing taxpayers. He said that a different approach was adopted for new taxpayers when they paid their taxes or filed returns.
New taxpayers will not declare their turnover in the first year but show working capital, as they will pay one percent of the working capital as tax, he said, adding that existing taxpayers were paying tax on turnover. From next fiscal year, the new taxpayers will pay tax on the same lines.
He called upon the traders who are paying taxes to understand the scheme in depth by contacting the FBR officials, as they are misperceiving the scheme as discrimination against them.
He further said that deadline that had been extended for filing the tax returns under the tax amnesty scheme is for all. He added that it would not be a good omen that separate dates were announced for filing of tax returns.
It is up to the government to extend the date further, he said, adding that in “my opinion, there was no need to further extend it”.
Highlighting the benefits, the member said that tax return filing under the scheme was very simple, as it could be completed within no time. While filing the tax returns online, filers have to face problems sometimes but in this scheme tax form was easy enough that taxpayers could fill it and submit it by themselves. Now ball is in the court of traders, as the FBR has accepted all demands of the traders.
While responding to a question regarding tax collections, he said that the FBR was making efforts to achieve the target of the current fiscal year. He said that the FBR chairman was closely monitoring the entire process, besides detecting the loopholes in the tax system.
