ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to consider introducing a one-time tax amnesty scheme for citizens, who have stashed their money abroad, to bring back their undeclared wealth on payment of a nominal amount of tax and become an active part of formal economy.
ICCI Acting President Sheikh Pervez Ahmed, in a statement issued on Thursday, said that many wealthy Pakistanis have kept billions of dollars abroad and offering them a one-time tax amnesty scheme would encourage them to bring their wealth to Pakistan.
He said that such an incentive, repatriated capital in billions of dollars would enter Pakistan’s financial system and boost the country’s economic activities. “Pakistan needs hefty capital to fund infrastructure and other developmental projects but with low tax-to-GDP ratio, the country was unable to generate enough tax revenues to enhance development in health, education and the social sector,” ICCI president said.
“This situation was increasing the country’s reliance on foreign borrowings, which is not good for our economic future,” Pervez Ahmed said. He was of the view that a one-time amnesty would facilitate the inflow of huge capital into the country that would, inevitably, help in accelerating Pakistan’s economic growth.
Sheikh Pervez Ahmed claimed that Indonesia has also passed a tax amnesty law to give a multi-billion dollars boost to its economy as it would bring in billions of dollars of additional revenue by offering low tax rates to those who wished to come forward to declare their untaxed wealth kept in foreign lands.
He said the scheme would also encourage more investment in the country, create employment opportunities and contribute positively to poverty alleviation. He also said that a positive economic outlook of the country also helps Pakistanis to declare their foreign assets on payment of nominal tax.
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