ISLAMABAD, July 8: Federal Board of Revenue Chairman M Abdullah Yusuf has called upon the businessmen and industrialists to take full advantage of the newly-announced amnesty scheme “Tax Investment Scheme-2008” for legalisation of their hidden assets by paying just two per cent tax.

Speaking at a ceremony held in connection with the formal launching of the scheme at the Islamabad Chamber of Commerce Industry (ICCI), the FBR chief said the scheme is applicable for both registered and unregistered persons.

To a query regarding ascertaining of the value of the undeclared assets, he said it would be accepted on the basis of “fair market value of assets as declared by you”.

The FBR chairman told the ICCI members that anyone who declares assets of greater value could take its advantage from the banks for further promotion of his business.

He said that the amnesty scheme was a major initiative of the present government and the business community needs to respond to it in a big way.

He was confident that the Islamabad Chamber, being a proposer of this scheme and a model chamber, would take a lead and show 100 per cent compliance.

Stressing on the enhancement of tax-to-GDP ratio, the FBR chairman underlined that we need to raise the existing ratio of 11 to 15 per cent. Had it been the 15 per cent tax-to-GDP ratio today, the revenue collection for 2007-08 would have reached Rs1.4 trillion.

In his opinion, there was a gap of Rs400 billion in revenue collection due to lower tax-to-GDP ratio.

Referring to the opportunities available in the country and the challenges faced by the business community, the FBR chief expressed the hope that they would take an advantage of opportunities and help improve revenue collection and expand tax base.

Abdullah Yusuf also referred to the recently announced “Tax Arrears Settlement Incentive Scheme” of the government which allowed the taxpayers to settle their tax arrears, including additional tax and penalty for non-payment.