NewsJan 02 , 2016
Vibrant economy to make country, army stronger: PM
By Muhammad Saleh ZaafirLaunches Voluntary Tax Compliance Scheme; says peace in Karachi necessary for peace in country; asks officials to bring tax rate down
ISLAMABAD: Prime Minister Nawaz Sharif on Friday said that a vibrant economy will make the country prosperous and the army stronger.
He was speaking in the jam-packed auditorium of the PM Office where traders and business community representatives from across the country thronged to witness the historic moments as a six-month-old fiscal entanglement was laid to rest on Friday and a new taxation strategy announced.
The prime minister, who launched the Voluntary Tax Compliance Scheme, urged the business community on the occasion to pay taxes transparently for greater development and prosperity, through the launch of the Voluntary Tax Compliance Scheme. The prime minister asked the government officials that they should ensure that no one was persecuted in any manner. The compliance scheme is aimed at registering non-filer traders and regulating the undocumented economy. It is the second tax amnesty scheme in as many years, which will also allow the taxpayers to legalise their black money by paying a nominal 1% tax.
Federal Minister for Finance and Economic Affairs Ishaq Dar, Special Assistant to the PM (SAPM) for Revenues Haroon Akhtar Khan, FBR Chairman Nisar Muhammad Khan and trader’s leader Khwaja Muhammad Shafiq also spoke on the occasion.
The prime minister explained to traders that collecting more taxes can help build a stronger economy, stronger army, reduce unemployment and poverty, attract more investment and fortify the country in the fight against terrorism.
The prime minister reminded traders and business community that the government had taken steps for resolving issues such as the restoration of law and order in the country and counter-terrorism. Peace in Karachi is necessary for peace in the entire country. The government is taking steps to reform the social sectors, including health, education, and road links as well, he added.
The prime minister said that the situation in the country has improved in comparison with the state of affairs three to four years ago. Economic reforms have yielded positive results and economic prosperity in the country will change the fate of the nation. Traders play an integral role in the development of economy and the government would provide support to traders in every way possible. He said the PML-N government has stepped forward to deal with internal and external challenges while policies are being devised after consultation with the relevant stakeholders. He made it clear that the government believes in resolving issues with mutual understanding and consultation as the government wants to resolve all internal and external issues by consensus. The spirit would take the country on the path towards progress and prosperity. Nawaz said he is very happy at the peaceful resolution of withholding tax issue being faced by traders and businessmen.
“We have successfully addressed the burning issue of tax with mutual agreement.” He expressed hope that such positive attitude in resolving issues will usher an era of success in every sector of the country’s economy. He said that country’s economy is moving from stable to vibrant as a result of the government’s prudent policies.
Prime Minister Nawaz vowed that his government was not perturbed by the challenges being faced by the country. The government will address all the issues with wisdom and by applying sagacity. He said that the government has taken up the challenges and doing well on the fronts of health, counter-terrorism and energy production. He informed the traders and business people that he had asked Finance Minister Ishaq Dar to reduce tax rates, enabling everyone to pay their taxes. It is good omen that withholding tax issue has been resolved amicably at the advent of the new year. He said that Pakistan enjoys good relations with all its neighbouring countries. The government has to defeat challenges, including terrorism, and energy shortage at every cost. He said law and order situation in Karachi has improved a lot due to the steps taken by the government. The economic policies should be framed in consultations with traders, business community and others. He proposed the officials to bring the tax rate down so that the people pay taxes happily. He said the government believes in transparency in all matters and through transparency, it has saved billions of rupees in LNG based energy projects alone. He urged the traders to cooperate with the government for the development of the country. He directed the FBR to frame public friendly policies.
The amnesty scheme has been designed for non-filers of income tax returns as well as those who file the returns but underreport the income to evade taxes, showed the draft of the Income Tax (First Amendment) Bill 2016. It has restricted the scheme to only the income from business while excluding earnings from profit on debt, dividends and property income. At present, less than one million people file income tax returns and Senator Dar hopes the new scheme will add at least one million more people.
The finance minister told the traders that the Voluntary Tax Compliance Scheme would be presented in Parliament to provide legal cover to beneficiaries. He said that everyone except parliamentarians can benefit from the scheme. He said those convicted of terrorism, money laundering and under anti-narcotics laws cannot benefit from the scheme.
Haroon Akhtar Khan in his speech said SROs worth Rs223 billion have been abolished. Now SRO can only be issued with the approval of elected Parliament. He said those who file their return of worth one million rupees have not required to file wealth tax under the scheme. Chairman Anjuman-e-Tajiran Khawaja Shafiq assured the authorities cooperation in the success of voluntary tax compliance scheme.
Courtesy www.thenews.com.pk
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