Govt mulls amnesty to achieve tax target.

ISLAMABAD -- The government is expecting to overcome tax collection shortfall through the amount generated under a tax amnesty scheme, which is likely to be announced next week through a presidential ordinance.

'The tax amnesty scheme will be announced after Finance Minister Asad Umar return to Pakistan from Washington,' said an official of the Federal Board of Revenue (FBR).

He said the government would announce the scheme through a presidential ordinance. 'The government will generate from Rs150 to Rs200 billion if the scheme is successfully implemented,' he said. However, he clarified that government was giving a chance to people to declare their hidden assets by paying nominal tax.

The tax shortfall has gone up to Rs317 billion in the first nine months (July-March) of the current fiscal year as the tax collection machinery collected Rs2,681 billion against the desired target of Rs2,998 billion. The proposed amnesty scheme will help FBR reduce tax collection shortfall and meet its annual tax collection target of Rs4398 billion during ongoing year.

Finance Minister Asad Umar said on April 2 that government was considering announcing a tax amnesty scheme before June in a bid to give an opportunity to people to disclose their local and foreign hidden assets by paying tax.

'We have several representations from all quarters, asking for one-time relaxation for those who have not declared their assets,' he said.

The government may issue the Foreign Assets (Declaration and Repatriation) Ordinance, 2019 for undisclosed foreign assets and Voluntary Declaration of Domestic Assets Ordinance, 2019 for undisclosed income and domestic assets.

The proposed scheme would cover...