ISLAMABAD: Prime Minister Nawaz Sharif is likely to announce “Voluntary Tax Compliance Scheme” on January 1, 2015 for registration of non-filer traders in a ceremony to be held at the Prime Minister Secretariat.
It is learnt that the traders from all over the country would be invited to attend the launching of the scheme
The government is expected to promulgate an Ordinance to implement the scheme after its formal announcement. The non-filer traders, who would not avail the scheme, would be required to pay the withholding tax on banking instruments. The lowest rate of 0.2 percent turnover tax on annual basis may be announced for traders’ community. The FBR will introduce a simplified income tax returns form for the traders. A one page simplified return for new filers has been devised in consultation with the stakeholders. The filing of wealth statement would be conditional for the non-filers traders under Voluntary Tax Compliance Scheme. The non-filer traders would not be bound to file wealth statement having annual income up to Rs 1 million. No question about source of investment would be asked on declarations of assets of traders having annual income above Rs 1 million. This is due to the reason that four year audit exemption would be available to those availing the scheme. During this period of audit exemption, no question about source of investment in properties etc would be asked from traders.
Sources said that the lucrative package would be announced to legalise the business capital of the traders on payment of nominal amount of tax. Under the proposed scheme, business accounts could be regularised. The Federal Board of Revenue (FBR) has proposed to provide time-bound immunity from audit to traders to the extent of business capital only. Four years exemption from audit would be available to persons who would declare/legalise their business capital under the scheme.
It is learnt that the sales tax registration of traders on the basis of electricity consumption may be revised. The traders having monthly electricity bill of Rs 50,000 may be required to be registered with the sales tax department. Finance Minister Ishaq Dar has issued directions to FBR for introducing further improvements in the scheme so as to attract maximum number of new tax payers and achieve the aim of broadening of tax base.
