KARACHI: Karachi Tax Bar Association (KTBA) has declared the present amnesty scheme announced by the Prime Minister on April 5 as the simplest scheme when compared with the amnesty schemes announced in the past.
At meet the press, KTBA President Khalid Mahmood said that previous amnesties were complicated and thus resulted in failure. He said that the current amnesty scheme would be successful as it is simple and without ambiguities.
Mahmood said bar members were receiving queries related to amnesty scheme but they were reluctant to document their undeclared assets before the announcement of federal budget.
The government introduced the amnesty for undeclared foreign and local assets through presidential ordinances, which will be available during April 10 to June 30.
Vice President Zeeshan Merchant, General Secretary Syed Zafar Ahmed and other office bearers of KTBA were also present on the occasion.
KTBA office bearers said the amnesty scheme would improve Pakistan balance of payment situation. They said that after implementation of OECD conditions and Common Reporting System the undeclared money and assets would not find hidings anywhere in the world.
Talking about the tax reform package announced by the prime minister, KTBA Vice President Zeeshan Merchant said that there was anomaly in tax slabs for business individuals. However, he said that salary class would take most of the benefits with revision of slabs effective from July 01, 2018.
He said that the amendment related to Protection of Economic Reform Act, 1992 was the key change that was a long standing demand of bar and other business associations.
He explained that local cash transfers to foreign currency accounts had been linked with Active Taxpayers List (ATL). However, foreign inflows to foreign currency account would be the same as the past.
Merchant also pointed out that the government had carrot and stick policy along with announcement of amnesty scheme. He said that under the new law discovery of foreign assets in any past year would be subjected to examination by the Federal Board of Revenue (FBR). On the other side, for local assets the time limitation of past six years had been maintained, he added.
The KTBA said that it had submitted its budget proposals and anomalies in the tax reform package to FBR for deliberations.
