Originally Posted by seher bano

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Tax Amnesty for the Tax Dodgers

Outline:
Introduction
Tax amnesty
Possible outcome
Recommendation
Conclusion

It appears that new Tax amnesty for Tax dodger by the Finance Minister, Hafeez sheikh is of no use. It also seems that these Tax amnesty has no bearing on the revenue of the Government. For one thing, Tax evaders are not naïve and they definitely know the pros and cons of this new Tax amnesty. Furthermore, experts are of the view that the move has only taken in order to net the Tax dodgers. But Finance Minister reminds every one that this move has not been finalized as they are waiting for the president’s approval. He has chosen ambiguity in his remarks because of the objection raised by the IMF officials.

The Tax amnesty would allow 3.8(m) Tax dodgers, both inside and outsider of the country, to bring their money into the country. In addition, only few months ago, it announced a reprieve for stock investors to provide a fresh trigger to investment in shares for boosting the capital. Noticeably, Tax amnesty is categorically being touted in order to trap the Tax dodger. For the Government, Revenue is always the Crying need for the hour; especially when the Budget deficit is broad. In view of this situation, legislature gives Tax evader enough space to whiten their untaxed money. However, it is frustrating to see the state rewarding those who cheat Government with the help of black sheep in Tax machinery.

India has implemented the same amnesty much before that of Pakistan, and has more than fourteen disclosure schemes but the desired out come is still far removed from the reality and despite her efforts the results are far from encouraging and the parallel economy continues to thrive there. In case of Pakistan, BFR earned just about 2.4(b) in 2008.

Government was to have dealt sternly with tax evaders, but nothing had happened hitherto. Why don’t we learn the lesson from India? Is it better to experience bitter reality despite knowing the case of neighbouring country? It would be better that Govt adopt some better strategy rather than Tax amnesty.

No wonder, Pakistani Government’s, indeed any Government, sole source of income is revenue without which it is hard to run the affairs of Government , but move such as Tax amnesty is not more than ridicule. If the FBR, as claimed, has all the information about the Tax dodger then they must be dealt with iron hand. On the other hand, Govt officials are required to find out the reality why the great number of people reluctant to pay taxes. Govt may take their cue from the developed countries that how they collect their taxes and why their people pay taxes happily. Govt must concentrate their attention on rewarding Tax payer rather than tax evader.