KARACHI, June 11: A number of tax proposals given in the budget 2008-09 will help the government to generate more revenue, particularly the scheme for whitening hidden wealth on paying 2 per cent tax.

Tax consultants and practitioners were of the opinion that the scheme will enable the budget planners to get sizeable amount of revenue because the amnesty for converting black money into white and its return to formal economy is being launched after a long gap.Abdul Qadir Memon, president Income Tax Bar Association Karachi (ITBA) said on Wednesday that increasing basic exemption on income tax for salaried class from Rs150,000 to Rs180,000 will also help give relief to fixed income groups.

For working women the basic exemption has been increased from Rs200,000 to Rs240,000. While announcing these measures Finance Minister Naveed Qamar said that the higher exemption allowed to working women was because of their dual responsibility in the society.

Younus Rizwani Sheikh, former president All Pakistan Tax Bar Association (APTBA) said that by allowing trade and industry to pay 2 per cent sales tax to settle their outstanding tax dues, the number of registered persons under the GST will increase.

However, by increasing income tax on rental income from the flat rate of 5 per cent and putting it on progressive rates at three slabs of 5, 10 and 15 per cent will discourage housing industry, he added.