ISLAMABAD: Prime Minister Imran Khan on Friday called on the citizens to join hands with the government to put an end to tax evasion by declaring their hidden domestic and foreign assets under a tax amnesty scheme which is set to expire on June 30.
Pakistan has been struggling for years to increase its tax revenue by bringing more people into the tax net. Currently, only one percent people among the population of 208 million pay income tax due to corruption and loopholes in the system.
Prime Minister Khan’s Pakistan Tehreek-e-Insaf party that promised to fix the country’s crumbling economy before winning the last general elections announced the tax amnesty scheme on May 14 for a period of 45 days, allowing people to declare their hidden assets and whiten their money.
“I need your support to put an end to tax evasion,” the premier said in a televised address to the nation, adding that this was a “golden opportunity” for them to declare their concealed money, jewelry, dollars, gold and assets stashed abroad.
Khan said that Pakistan’s debt increased from Rs6,000 billion to Rs30,000 billion in the last ten years and half of the tax revenue was consumed on paying the interest on these loans. “This means we are stuck in a debt trap,” he said, noting that “corruption and tax evasion” were the main reasons behind the country’s existing economic woes.
“Now you don’t need worry about corruption as we won’t spare [the corrupt elements] … The problem, however, is tax evasion and if the public and the government don’t join hands, we won’t come out of the debt trap.”
Discussing the Rs5.5 trillion ($36 billion) tax revenue target set for the next fiscal year, he said there was, in his opinion, enough potential to collect around Rs8 trillion in taxes. “If we manage do it, our problems will be solved. We can be free, we can stand on our feet, get our people out of poverty. We can brighten our children’s future. But for this, I need your support.”
Urging people to benefit from the tax amnesty scheme, the premier said he did not want people to face any problem since the Federal Board of Revenue, the country’s tax collection body, had the record of each individual. “Therefore, I want you to benefit from [the scheme], and play your part to steer the country out of this crisis,” he said.