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Govt aims at expanding tax amnesty scheme: Asad

Govt aims at expanding tax amnesty scheme: Asad

ISLAMABAD: The government is planning to expand the tax amnesty scheme for rich people along with provision of exemption from tax audit for a maximum of 10 years in a bid to extend the country’s tax net. The scheme targets 3.3 million NTN holders who do not file tax returns.

This was stated by Federal Board of Revenue official spokesperson Shahid Husain Asad. He said that a summary on the subject had been sent to the Finance Ministry for approval and notifications regarding the scheme will be issued in the coming week.

The offer would be available to the wealthy people who do not have a valid national tax numbers nor have filed income tax returns on their businesses by November 28, the date on which the Prime Minister announced the incentive package, sources said. Under the proposed scheme, the government will exempt them from paying additional tax, penalty on late filing of tax returns and default surcharge on payment.

For availing the facility, an individual doing business but not having an NTN shall have to file tax returns for the past five years, with the maximum payment of Rs 25,000 per year as fixed rate. Under the income tax law, the past returns can only be filed for five years.

The FBR spokesman said that the returns would be filed from the year of initiation of the business and the five-year period had been mentioned just to comply with the law. An individual can file a single return or two for coming on the tax roll under the scheme, he added.

Immunity from audit will be available for the tax years for which returns are filed and for an equal number of subsequent years. In case returns for the past five years are filed, the audit exemption period will span a maximum of 10 years.