KCCI’s paradox: demands action against evaders but praises amnesty

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KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged the government to deal the tax evaders with iron hand. But at the same time it appreciated the government for giving another 31 days to evaders for declaring concealed income and assets at nominal tax rates.
KCCI President Muffasar Atta Malik in a statement issued on Wednesday while appreciating FBR’s recent move to extend the Amnesty Scheme for a period of one month, said: “This was demanded by the Business and Industrial community and we are grateful to the decision makers for paying heed to KCCI’s request.”
He was optimistic that the schemes will help government in bringing undocumented persons, assets and income into the documented sector. The schemes have the potential to bring in macroeconomic and fiscal stability in the economy.
Muffasar Malik said, “The schemes offer a lucrative opportunity to legalize undeclared assets by paying a nominal tax amount which is particularly beneficial in case of Pakistan where volatile policies, changing regimes and political uncertainties have created many gaps.”
In contrast to above statement, KCCI President also advised the government to formulate practical policies to increase the tax net and catch tax evaders in order to strengthen the country’s economy.
The loyal taxpayers are being overburdened every year to achieve the revenue targets where those outside the tax net continue to enjoy all the luxuries of life without contributing a single rupee to the national exchequer, he opined, adding that FBR has been claiming of having details of all such tax evaders since many years but unfortunately no action has been taken so far to strictly deal with them.
He suggested that the existing bracket of 30 to 35 percent tax rate has to be brought down to 10 percent, which, if done, would cause a taxpayers windfall and help in documenting the economy.