ISLAMABAD: Advisor to Prime Minister on Revenue Haroon Akhtar Khan has said that Voluntarily Tax Compliance Scheme (VTCS) is not meant for converting black money into white. He rejected all the allegations levelled against the scheme by the opposition.
During an exclusive interview with Customs Today, he said that the FBR imposed 0.6 percent withholding tax on bank transactions for non-filers. He said that the government decided to take this step for documentation of the national economy. He clarified this step is meant to collect advance tax from non-filers and to make them as tax-filers. He said when government imposed 0.6 percent withholding tax on banking transactions traders started agitating, after this traders reached agreement with government and after that government decreased the withholding tax from 0.6 percent to 0.3 percent.
Haroon Akhtar said that we asked traders to inform us about their issues so we should sort out that issues after taking them into confidence. Traders apprise us from their issues. They complained that tax ratio is very high so government should announce decrease in sales tax. They also proposed to exempt them from audit. Haroon Akhtar said that we promised traders bodies to sort out their problems on priority basis. He said that black money is called that amount which generated through selling of narcotics, corruption and smuggling, extortion. He clarified that main purpose to introduce Voluntarily Tax Compliance Scheme (VTCS) is to make our economy documentary. He said that we asked traders community that if they will under tax net for a period of three years they will be exempted from any audit and nobody will ask them about their source of income. He said we inroduced a simple tax form and we accepted all the demands of traders. He said that we introduced tax submission form in Urdu langauge.
He said we are promoting Voluntarily Tax Compliance Scheme on all forums because Prime Minsiter Nawaz Sharif and Federal Finance Minister Ishaq Dar are trader-friendly personalities. He said he himself belong to a businss family and can very well understand the issues of business community. He said we are taking every possible measure to convince traders to avail benefits of VTCS because it is most beneficial scheme for non-filers to become filers
He said we publish advertisements in our daily newspapers and nominated focal persons to hold meeting with traders community and apprise them about the benefits of VTCS. He said he himself visited various cities of Punjab to get in touch with traders.
Haroon Akhta said that we are quite optimistic that traders community will submit their tax returns till February 29. He said after expiry of this date will compile the whole data of this scheme. He said that we introduced this scheme on demand of traders community. Advisor to Prime Minister Haroon Akhtar urged to all traders to become tax filers through VTCS. He said those who failed to take benefits of this scheme have to face tough situation because they will have to disclose the source of their income.
He said goverment will levy 35% tax rate on them, while they will pay 0.6 withholding tax on banking transactions. He appreciated the performance of FBR and said that FBR is using all resources to generate revenues but there is need for reforms also in some areas.
He said goverment keeps the right to receive tax from defaulters through iron hands but Prime Minsiter advised us not use extra ordinary measures in collection of taxes. He said FBR also upgraded computerized system and now nobody can hide in filing of tax returns. He said if anybody purchase some propery but not paying taxes we will approach him.
Haroon Akhtar said that FBR collected a revenue of Rs 35/- billion in second quarter of current fiscal year. He also disclosed that during the month of January growth target was 3 percent extra from 20 percent.
He hailed the extra ordinary efforts of FBR team and said that only way to achieve progress is payment of taxes transparently. He said most of people during their TV appearance chanting different slogans for taxes but they himself are tax defaulters. He advised people to start business of their choce, make investment but pay taxes according to their actual income. He said that due to latest technology nobody is beyond access of FBR and whoever will find in tax evasion he/she have to face tough legal action.
