Page 11 - Pakistan Link - April 26, 2019

PAKISTAN APRIL 26, 2019 – PAKISTAN LINK – P11
Government to Go ahead with Asad Umar Responds to PPP’s

Tax Amnesty Scheme Criticism with Party’s Own Record

Th e amnesty scheme “But this government feels for the
2018 announced by then people, and we say that it [infl ation]
prime minister Shahid should be lower even than this, and are
Khaqan Abbasi fetched taking steps for it,” he said.
Rs124 billion in taxes Umar next addressed criticism on
from a total of 82,889 the budget defi cit.
people who declared as- “It [the defi cit] is defi nitely quite
sets worth Rs2.5 trillion large and at a level that it shouldn’t be.
despite legal challenges Th ere’s no doubt about that, and it may
and sunset period of the even cross 6.5pc this year. But let’s take
Pakistan Muslim League- a look at the past,” he said.
Nawaz government and “Th e budget defi cit averaged 7pc
threats by the PTI to re- over the PPP’s fi ve years in power,”
verse the scheme and take Umar reminded the Lower House.
action against benefi cia- “Th ere were some years when it was
ries. 8.5pc, 8.8pc.”
A total of 76,960 “Th e revenue targets that are not
domestic assets were de- being met should also be a matter of
clared last year, involving concern,” Umar conceded. “It’s possible
a total value of Rs1.460tr that they may fall short by 7-8pc this
and tax amount of about time. But the diff erence between the
Rs77bn. Likewise, 5,929 Federal Board of Revenue’s targets and
n By Khaleeq Kiani foreign assets worth Islamabad: Former fi nance minister the actual revenue collected was on av-
into the tax net instead of Some of the distin- Rs1.04tr came to the Asad Umar - only days aft er stepping erage 8pc over the 2008-13 period,” he
just generating funds. He guishing features of the government record, con- down from Prime Minister Imran recalled.
Islamabad: Despite a directed the FBR to fi ne- amnesty scheme include tributing Rs47bn ($436 Khan’s cabinet amid a reshuffl e - on Umar also addressed concern over
change of command and tune the scheme to make permission for revision million) revenue to the Wednesday took the fl oor to respond to foreign debt.
internal opposition, the it simple to understand in balance sheets, decla- national kitty. - Dawn PPP Chairman Bilawal Bhutto Zardari’s “Yes, it is increasing and it
government’s proposed and easy to implement, ration of Benami assets, remarks in the Lower House regarding shouldn’t. Th ere is only one govern-
amnesty scheme for asset an offi cial statement said, sales tax and federal excise Budget to Be the country’s economic policy. ment in Pakistan’s history that doubled
declaration will go ahead adding that the objec- duty as well as settlement “Bilawal said that the government debt over its tenure,” he said, pointing at
without any major change tive of the scheme should of court cases. It requires Announced had admitted to its failures [on the eco- the PPP. “Th ere was a 135pc increase in
and will come to an end be to make the economy mandatory fi ling of tax nomic policy front] by changing the fi - debt [during the PPP era],” he recalled.
before the International more tax-compliant and returns and cash needs to Not Earlier nance minister,” Umar recalled. “Th e truth is that this [criticism]
Monetary Fund’s bailout documented. be put in bank accounts “Bilawal: there were four fi nance has nothing to do with the economy.
program kicks in on July Offi cials said the am- and there will be a limit Th an May 24 ministers in the PPP’s government Citizens are being dragged into it, but
1. nesty scheme would come of gold declarations to a [from 2008-2013],” the erstwhile fi - it has nothing to do with the people. All
Th is was the crux of into force immediately to maximum of Rs5 million. Islamabad: In his fi rst nance minister reminded the PPP these things that we are having to hear
a special meeting on the enable people to declare Th e scheme will be interaction with the me- chairman. “Each tried to sell their own now, it is only because [...] the noose
subject presided over by assets and pay taxes on available to all companies dia since being appointed snake oil; each would fail and go home. is now tightening around that stolen
new Adviser to the Prime them by June 30. Th ey and individuals, except the prime minister’s ad- If we are ‘not qualifi ed’ and ‘failures’, wealth,” he said.
Minister on Finance, Dr said the whole leadership three major categories — viser on fi nance, Dr Abdul what, then, were you?” he asked. “Th e government is not doing it,
Abdul Hafeez Shaikh, here would be required to mar- holders of public offi ce Hafeez Shaikh revealed “He [Bilawal] said that day that but the authorities are closing in. Th e
on Sunday. It was attended ket the scheme for com- since Jan 1, 2000, their that he had already spo- Pakistan’s ‘economic murder’ had taken National Accountability Bureau is do-
by Finance Secretary Mo- plete ‘political ownership’ spouses, children, broth- ken to fi nance ministry of- place,” Umar said, referring to the PPP ing it. Th e courts are doing it. Fake
hammad Younas Dagha, of the coalition partners ers and sisters or lineal fi cials regarding the bud- leader’s earlier statement. “So I decided accounts keep surfacing. Under these
Minister of State for Rev- with maximum emphasis ascendant of descendants; get for the next fi scal year. to examine [Pakistan’s] history to get an circumstances, of course they [the PPP]
enue Hammad Azhar, and on pushing it as a “last proceeds derived from Speaking outside the idea of whether [the statement was right will be worried, and expressing that
Federal Board of Revenue chance to be followed by commission of a criminal fi nance ministry on Sat- or wrong]; whether we have seen such worry is their right,” Umar added.
chairman Dr Jehanzeb full-scale prosecution”. off ence; and cases pend- urday, shortly before he [an economic] situation or even worse “When your Swiss accounts are in
Khan and others. Th e enforcement of ing before a court of law left for a meeting with the in the past.” danger, when your palaces in Surrey,
“Th e tenure of the this slogan will be en- with the exception of old- prime minister, Shaikh “People are worried that GDP your towers in Dubai, your Park Lane
amnesty scheme cannot sured through assistance er pending litigation. said he had directed the growth has slowed down,” Umar noted, fl ats are in danger [you are bound to
be allowed to go beyond of banks and the National It will allow fi ling ministry to start draft ing acknowledging that growth rate esti- worry]. Alongside all this, there must be
June 30,” a senior offi cial Database and Registration and revision of sales tax a medium-term strategy mates given by various observer bodies a government that can stand up to Paki-
told Dawn aft er the meet- Authority (Nadra) and returns for last completed paper for the economy. range from 3-3.9 per cent. stan’s biggest economic mafi a,” he said.
ing when asked whether synchronization of their tax period and declaring “We will be able to While he conceded that Pakistan “Th is mafi a is accustomed to us-
the business community’s database to cover the pe- last fi ve years’ undisclosed furnish a medium-term defi nitely needs a stronger growth rate, ing the money of Pakistan’s taxpayers
demand for a longer pe- riod of undeclared assets. sales and payment of 3pc strategy paper by the “certain steps needed to be taken when on themselves, and when they have
riod would be accepted Th e amnesty scheme sales tax or federal excise. 30th,” he said. Shaikh later there is a balance of payments defi cit seen those doors closing, their teaming
or it would be made more has four major objectives. Another condition will be stated that the budget can [to correct course], and this [the slow- up together is a very powerful combi-
liberal, a demand made by It will help in declaration depositing the cash de- be presented no earlier down] is their natural outcome.” nation. Th is is the [reason for the] hue
some leaders of the Paki- and reporting of undis- clared in a bank account than May 24. He then compared the GDP and cry you are hearing today,” Umar
stan Tehreek-i-Insaf. closed assets, sales and in- and retaining the balance Referring to discus- growth rate in PTI’s tenure to the continued.
“Th e scheme has to comes “for fresh start of a till June 30, besides with- sions with the Interna- growth rate during the PPP govern- “We will need to stand up to the
be concluded before the tax-compliant economy”. drawal of appeals and tional Monetary Fund ment’s fi rst year, which had averaged mafi a and bare their conspiracies,” he
start of the IMF program,” It will provide economic writs in courts. (IMF) for a bailout pack- at just 0.4pc. He conceded that the PPP asserted as he concluded his speech.
the offi cial said, adding stimulus through move- Benami assets need age, Shaikh assured that, government had inherited a fi nancial Bushra Bibi’s
that Mr Shaikh did not ment of funds, reduce liti- to be declared by paying “We will be taking our crisis, “but in their fi ve years, what did
suggest any change in tax gation and enhance reve- 10pc tax, while foreign negotiations with the IMF they do [in bettering the situation]?” he Ex-Husband Remarries
rates on declaration of nues without much eff ort. liquid assets to be repatri- forward.” asked.
hidden assets. Th e scheme will cover ated into Pakistan attract “Both parties want “Maybe no one ever placed this Lahore: Kha-
Th e amnesty scheme declaration of undisclosed 5pc tax. Th ere will be 1pc progress on the matter, data in front of Bilawal, but at the end war Fareed
could not be approved in assets, Benami assets, tax on total credit entries and they have a commit- of their [the PPP’s] fi ve years, the GDP Maneka, the
two meetings of the feder- sales and incomes on or from July 1, 2013 to June ment to us. I will be con- growth rate was 2.8pc. Th ere has never former hus-
al cabinet last week, before before June 30, 2018, with 30, 2018 or 10pc tax on tacting the IMF mission been a government in Pakistan with a band of Bush-
the exit of then fi nance tax rates ranging between peak credit entries during head today evening,” he lower GDP growth rate,” Umar claimed. ra Bibi, has
minister Asad Umar. fi ve and 10pc with certain the same period — which- stated. Th e ex-minister agreed that law- tied the knot
“Basically, there is no exceptions, but assets will ever is higher. He held a telephonic makers “should worry about infl ation for the sec-
change in the scheme ex- be valued at prescribed Likewise, there will discussion with IMF Di- because there is a lot of poverty in this ond time, Geo
cept that Mr Shaikh wants rates. Foreign assets will be a 2pc tax on total credit rector Jihad Azour and country - even the middle-class, white News, citing
it to be simplifi ed and pre- be converted into money entries in Benami bank IMF’s mission chief for collar worker has a hard time.” sources and a close friend of the
sented to a larger group and remitted to rupee ac- accounts from Jan 1, 2017 Pakistan, Ernesto Ramirez “Right now, the infl ation rate in groom, reported on Friday night.
for consultations on Tues- counts in Pakistani banks till the date of issuance of Rigo, according to a state- approximately eight months [has av- Th e wedding ceremony took
day,” said another offi cial. or deposited into declar- ordinance or 10pc tax on ment released by the min- eraged] 6.8pc. It may even go up to 7 place in Lahore and was attended
Th e adviser on fi - ants’ own foreign curren- peak credit entries during istry of fi nance. or 8pc. [Compared to that], the PPP by members of the Maneka family,
nance desired that it cy bank accounts in the the same period — which- “Th ey discussed the government averaged an approximate the groom’s sons and daughters, and
should be a people-friend- country. In the previous ever is higher. Any other progress of negotiations infl ation rate of 12.3pc in its fi ve years some close friends.
ly scheme, helped docu- such schemes, the foreign asset declaration will be for an IMF-supported in government. At that time, we never Khawar Fareed Maneka has
ment the economy and assets were not required to subject to 7.5pc tax on the program for Pakistan,” the heard anyone raise their voice in con- married Sameera Agha, who be-
brought more non-fi lers be transferred to Pakistan. prescribed value. BUDGET, P28 cern over rising prices,” he criticized. comes his second wife, said report.
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