Govt Proposed Amnesty Scheme for Provinces
ISLAMABAD: The federal government has proposed the introduction of an amnesty scheme to whiten black money from services for the provinces.
Officials of the Ministry of Finance revealed that the Finance Adviser Abdul Hafeez Sheikh had received a letter from the Federal Board of Revenue (FBR) in this regard.
It is suggested in the letter that an asset statement scheme should also be submitted to the Provincial governments, similar to the scheme offered at the federal level, for efforts to bring wealth to the mainstream could be successful.
Officials indicated that the business community proposed the idea during FBR Chairman Shabbar Zaidi's visit to Karachi, and therefore the Finance adviser was asked to introduce the scheme at the provincial level.
According to the Asset Declaration Ordinance, 2 per cent sales tax and the federal excise duty is available for declarations of undeclared assets made until 30 June 2018.
But the collection of services ' sales tax largely comes from the provincial domain. The provincial governments should, therefore, propose a tax amnesty system for services such as the Federal Government so that it can be better and more efficient.
The aim of the tax amnesty was to document the economy and to broaden the tax net. In order to document an economy, regulating the services sector would be helpful.