In national interest: Law ministry defends tax amnesty in LHC

The federal law ministry maintains the scheme was introduced to bring non-filers into tax net

LAHORE: The federal government on Wednesday told the Lahore High Court that no violation of the Constitution was committed in the enactment of the Voluntary Tax Compliance Scheme (VTCS).

This was stated in a report submitted on behalf of the federal law ministry during the hearing of a petition challenging the tax amnesty scheme. According to the report, the Voluntary Tax Compliance Scheme (VTCS) was introduced to bring non-filers into the tax net for the achievement of broader national objectives.

The ministry maintained in the report that no violation of the Constitution was committed in the enactment of the scheme as the Income Tax Act 2016 was duly debated in the National Assembly and became an Act of the parliament.

The report said the scheme was introduced through Income Tax Amendment Act 2016 in the backdrop of enactment of section 236-P in the Income Tax Ordinance, 2001.

The ministry requested the court to dismiss the petition for having no ground.

After going through the report, Justice Shahid Jamil Khan directed both sides to come up with concluding arguments on March 2, the next date of hearing.

Advocate Sheraz Zaka had filed the petition, contending that the tax amnesty scheme should be declared discriminatory as it was exclusively meant for traders and excluded lawyers, doctors and other professionals. He was of the view that the scheme was launched to provide a cushion for traders to convert launder their black money.

Published in The Express Tribune, February 2^nd, 2017.