Business community’s suggestion: Tax amnesty scheme could bring back money
It is hoped $200b will become part of economy and foreign reserves
Sheikh said Pakistan would be able to repay its foreign loans besides launching mega projects without any foreign assistance if the billions of dollars kept abroad were brought back.PHOTO: FILE
MULTAN:
Immediately after the publication of a report on money kept by foreign clients in Swiss banks where Pakistan was at the 69th place with 1.5 billion Swiss francs, the business community of southern Punjab has called on the government to take measures for bringing back the wealth.
They urged the government to consider introducing a one-time tax amnesty scheme for those Pakistanis who had stashed money abroad so that they could be encouraged to bring back their undeclared wealth on payment of a nominal tax and become an active part of the formal economy.
The business community hoped that this way more than $200 billion would become part of the country’s foreign currency reserves.
Multan Chamber of Commerce and Industry President Fareed Mughis Sheikh said in a statement that many wealthy Pakistanis had kept millions of dollars abroad due to various reasons and the tax amnesty scheme would incentivise them to bring back the undeclared wealth to their home country.
He said with such an incentive, repatriated capital would enter Pakistan’s financial system and give a boost to economic activities.
“Pakistan needs a huge amount of capital to fund infrastructure and other development projects, but with a low tax-to-gross domestic product ratio, the country has been unable to generate enough tax revenues to enhance spending on health, education, social and development projects.”
Sheikh said Pakistan would be able to repay its foreign loans besides launching mega projects without any foreign assistance if the billions of dollars kept abroad were brought back.
Published in The Express Tribune, July 12th, 2016.
Immediately after the publication of a report on money kept by foreign clients in Swiss banks where Pakistan was at the 69th place with 1.5 billion Swiss francs, the business community of southern Punjab has called on the government to take measures for bringing back the wealth.
They urged the government to consider introducing a one-time tax amnesty scheme for those Pakistanis who had stashed money abroad so that they could be encouraged to bring back their undeclared wealth on payment of a nominal tax and become an active part of the formal economy.
The business community hoped that this way more than $200 billion would become part of the country’s foreign currency reserves.
Multan Chamber of Commerce and Industry President Fareed Mughis Sheikh said in a statement that many wealthy Pakistanis had kept millions of dollars abroad due to various reasons and the tax amnesty scheme would incentivise them to bring back the undeclared wealth to their home country.
He said with such an incentive, repatriated capital would enter Pakistan’s financial system and give a boost to economic activities.
“Pakistan needs a huge amount of capital to fund infrastructure and other development projects, but with a low tax-to-gross domestic product ratio, the country has been unable to generate enough tax revenues to enhance spending on health, education, social and development projects.”
Sheikh said Pakistan would be able to repay its foreign loans besides launching mega projects without any foreign assistance if the billions of dollars kept abroad were brought back.
Published in The Express Tribune, July 12th, 2016.