KARACHI: Tax amnesty leader Dr. Ashfaq Ahmed said on Tuesday that Rs956 billion had been wiped off the books as a result of the current amnesty, according to The News.
However, he claimed that only a portion of the funds could be reinvested, rendering the scheme’s primary goal moot.
He made the remark at a discussion with businesses at FPCCI Karachi when he was responding to a call for another amnesty plan from the sector in order to promote investment.
That latest amnesty program “did not meet its aim, which was to build productive assets,” Ahmed added. “The board was dissatisfied.”
Further, the FBR will give incentives for investment in ailing sectors as part of the industrial assistance package, according to him.
He went on to say that these tax benefits will be extended to equipment imported for the purpose of starting new businesses.
To address this issue, the chairman of the Federal Reserve Board (FBR) urged the business community to develop sector-specific proposals that might be included in the budget-making process.
He went on to say that although he couldn’t grant every demand of the business sector, he would take their suggestions carefully and address any legitimate issues they had.
Ahmed explained to his audience that only 20% of the retail sector’s total size was being reported, leaving the other 80% unaccounted for.
Tax increases were the only option available to the government to achieve its fiscal obligations after many trips to meet with the International Monetary Fund (IMF).
In his opinion, many individuals were living extravagant lifestyles yet weren’t even paying any taxes.
It’s necessary to raise revenues through expanding the tax base, he said.
As well, he cautioned the pharmaceutical business against any kind of protest strikes, noting that they had no choice but to abide by the law.
The pharmaceutical industry recently announced that it would go on strike if the federal government did not address its concerns about refunds for sales taxes.
Although the Covid-19 outbreak had crippling effects on the economy, the FBR performed well and collected record taxes, according to the chairman, who expressed hope for a Tax-to-GDP ratio of 12 percent shortly.