Khudayar Mohla –
While announcing asset declaration scheme, 2019 on Tuesday, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh claimed the government has tried to make the scheme easy to comprehend and implement saying the scheme would have realistic targets with low rates.
Soon after the Cabinet approved that scheme, Sheikh said in a media briefing that basic purpose of the scheme was not to generate revenue but to make the economy of the country documented in addition to making dead assets functional. Besides, he said that the schemed is meant to encourage business community to participate in the legal economy.
During the briefing Federal Board of Revenue (FBR) Chairman Syed Shabbar Zaidi, Minister of State for Revenue Hammad Azhar and Special Assistant to the Prime Minister (SAPM) on Information and Broadcasting Dr Firdous Ashiq Awan were also present.
Pakistani citizens have opportunity to avail the scheme until June 30 except those who hold public office and their dependents. Assets within the country and abroad (except for real estate) can be whitened after paying a rate of 4 per cent whereas whitened cash assets will have to kept in Pakistani bank accounts. The people intended to keep their whitened money abroad would have to pay a rate of 6 percent while availing the scheme.
Dr Sheikh informed that that declaration of real estate, its value will be considered 1.5 times more than the FBR-assigned value to bring it at par with the market rate whereas the scheme has the facility for citizens to whiten their benami accounts and properties before the Benami Transaction (Prohibition) Act, 2017, is enforced.
Responding to a question, Sheikh expressed that the IMF programme is in favour of the country whereas actions to reduce gap between imports and exports will reduce losses of state-owned entities and curtailing expenditure are in favour of the country.
Dr Sheikh pointed out that some people were showing concern that electricity tariff will be increased under the IMF accord saying those who consume less than 300 units will not be affected.
Giving justification for approaching to IMF, Dr Sheikh said that the country exports were decreased whereas foreigners were reluctant to invest in the country, large state institutions remained loss-making and revenue mobilization was not done effectively.
Responding to a question State Minister Azhar said that unlike the amnesty schemes introduced in the past, the current scheme has been introduced through which it would be mandatory for people declaring assets to become tax filers.
Azhar further said that scheme was not being offered to generate revenue but have an option for business community to revise their balance sheets, adding people who will avail the scheme will deposit their cash in hand with bank and will declare it along with the deposit slip as proof.
