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Payment of tax on declaration of foreign assets through a bank account abroad affects revenue collection

Payment of tax on declaration of foreign assets through a bank account abroad affects revenue collection

ISLAMABAD: A relaxation of payment of tax on foreign assets from abroad of the ongoing Tax Amnesty Scheme may double or triple the revenue collection in result of this scheme. It is just because of the fact that thousands of Pakistanis residing overseas and in the country have assets abroad but don’t maintain accounts in foreign banks.

This condition is barring them from availing the tax amnesty scheme as well as affecting revenue collection by the Federal Board of Revenue (FBR) because people having assets abroad are ready to pay tax by buying dollars from local market.

A source at FBR told Customs Today that under pragmatic approach and leadership of FBR Chairperson Rukhsana Yasmin and her management, the FBR team is making all-out efforts to enhance the revenue collection.

This team expects Rs150 billion in the form of tax collection out this scheme whereas FBR had collected around Rs100 billion by the end of last month.

Therefore, FBR further extended the scheme for one more month with an expectation of collecting Rs70 billion more; however, it will consider as a great success if Rs30 billion more are collected by the end of current month.

The source said that the day before yesterday, FBR chairperson Rukhsana Yasmeen visited Lahore and held an interactive session with traders and lawyers, chartered accountants at Corporate Regional Tax office Lahore and participants also pinpointed the barrier of the said condition of depositing tax of foreign assets in the form of US dollars through a bank account from abroad.

During the session, however, FBR officials could not make any commitment regarding removal of the said clause or condition, but acknowledged that revenue could be double or triple with the removal of the said condition.

However, the source said that FBR was fully sensitized about the said issue and very likely to consider amending the said condition in a bid to enhance revenue out of tax amnesty scheme in the ending days of the current month.

It is just because of the fact that people tend to pay their taxes in the last days of the given deadline or last date. The source said that participants of the interactive session gave very positive response to the chairperson’s advices to benefit from the tax amnesty scheme.