ISLAMABAD: Prime Minister Nawaz Sharif has urged the business community to pay taxes transparently for greater development and prosperity, through the launch of the Voluntary Tax Compliance scheme.

The compliance scheme launched here Friday aims to register non-filer traders and regulate the undocumented economy.

Nawaz explained to traders that collecting more taxes can help build a stronger economy, reduce unemployment and poverty, attract more investment and fortify the country in the fight against terrorism.

The premier told traders the government has taken steps towards resolving issues such as the restoration of law and order in the country and counter-terrorism.

"Peace in Karachi is necessary for peace in the entire country," he said. "The government is taking steps to reform sectors including health, education and road links as well."

Nawaz said the situation in the country has improved in comparison with the state of affairs 3-4 years ago, Radio Pakistan reported. "Economic reforms have yielded positive results and economic prosperity in the country will change the fate of the nation," he claimed.

Traders play an integral role in the development of economy, he said, adding that the government would provide support to traders in every way possible.

"The PML-N led government has stepped forward to deal with internal and external challenges while policies are being devised after consultation with the relevant stakeholders in this regard” in order to steer the country towards progress, Nawaz claimed.

The government believes in resolving issues with mutual understanding and consultation, he told members of the business community. "This spirit will take the country forth on the path towards progress and prosperity."

Finance Minister Ishaq Dar on Monday directed the Federal Board of Revenue (FBR) to further improve the draft Voluntary Tax Compliance scheme in order to attract maximum number of new taxpayers and achieve the aim of broadening the tax base.

Imran rejects newly launched tax scheme

Pakistan Tehreek-i-Insaf (PTI) Chairman Imran Khan vehemently opposed the tax amnesty scheme announced by the prime minister, calling it a tax on the honest people, DawnNews reported.

The government laid new taxes worth Rs40 billion without getting approval from the parliament, he added.

This scheme by PML-N is an attempt to clean their black money and we strongly reject this scheme, Imran stressed.

The PTI chief slammed the policies of the incumbent government yet again and said it is making China-Pakistan Economic Corridor (CPEC) controversial.

With the start of the new year, provisional figures released on Tuesday showed the FBR's revenue collection exceeded the collection target by Rs20bn to Rs770 billion for the second quarter (October-December) of the fiscal year.

The surpassing of target is unprecedented because in the past few years the FBR has never been able to achieve revised targets.