WITHIN 11 months of the last amnesty scheme lapsing, the government has come up with another scheme for the benefit of those who neither pay their taxes nor declare their assets.

Numerous such schemes have been launched in the past to widen the tax net and whiten black money, and the result of all has been unsatisfactory. It is the fear of law and severity of punishments which forces people to pay taxes.

Tax evasion is considered a crime and conspiracy against the state in developed countries. Laws exist in Pakistan but are not implemented because of the nexus of corrupt tax officials, traders and powerful vested interests within the ruling elite and public office holders.

This country has witnessed continuous devaluation of the rupee with the objective of boosting our exports. One wonders how exports can be increased when the investment in manufacturing industry does not offer returns, nor are there any incentives. As long as investment in real estate offers attractive returns with almost minimal taxes, there is no way exports will be boosted, nor tax revenues increased and employment generated.

The latest amnesty scheme allows real estate investors to pay one per cent tax on 1.5 times the DC (deputy commissioner) value of land. This rate too is almost a fifth to a tenth of the market value, if not lesser.

Financial bankruptcy is to be expected when benami assets or cash transactions involving millions were not even a crime till 2017.

Even after legislation imposing punishment and confiscating benami property with five years imprisonment, not a single culprit has been punished. Instead they are being offered amnesty schemes. Why?

Malik Tariq
Lahore

Published in Dawn, May 23rd, 2019