NA panel passes tax amnesty scheme

Only four of the seven members voted in favour of the bill

ISLAMABAD:

The government on Thursday got the country’s ninth tax amnesty scheme passed from a National Assembly panel with a thin majority amid the opposition’s protest over leaving sources of undeclared assets – smuggling and under-reporting of income – unplugged.

The Standing Committee on Finance and Revenue passed the Income Tax Amendment Bill 2016 with a majority of one vote.



Out of seven members who attended the meeting, four belonging to the ruling Pakistan Muslim League-Nawaz voted in favour of the bill while Pakistan Peoples Party, Pakistan Tehreek-e-Insaf and Muttahida Qaumi Movement voted against the scheme.



“It is not an ideal bill, and the scheme has its flaws; but it has to be passed as goodwill to the traders”, said PML-N’s Qaiser Ahmad Sheikh, chairman of the panel.

It is the ninth amnesty scheme that the Federal Board of Revenue has offered, each time hoping that it would be the last chance for tax evaders and non-filers. The partial data the FBR shared with the committee showed that all the past schemes had failed.



After clearance from the panel, the bill would now be taken up for a vote by the lower house of parliament. The government enjoys comfortable majority in the National Assembly and will get it easily passed. The government seeks approval of the bill before January 31, the last date for filing income tax returns for the fiscal 2014-15 that ended on June 30 last year.

The FBR’s admission of failure is an alarming message from the state, saying that it is unable to force its writ, said PTI MNA Asad Umar.

He said the country’s tax system was faulty, making even honest people avoid the tax net. Until the government addresses the issues of smuggling and under-reporting, people will continue accumulating assets, and the government would give one after another amnesty schemes, he added. Criticising the FBR’s performance, he said the taxman was “corrupt to the core”.



Meanwhile, PPP MNA Dr Nafisa Shah said: “Limiting the amnesty scheme to just traders is a violation of the Constitution.”The government turned down her proposal to extend the scheme to all the companies that have up to Rs50 million of working capital.

She said the government should first bring reforms and then implement a universal tax scheme.

Published in The Express Tribune, January 15^th, 2016.