IMF expresses reservations over govt’s Asset Declaration Scheme
IMF says Asset Declaration Scheme is unfair as it discourages taxpayers
June 29, 2019
ISLAMABAD: The International Monetary Find (IMF) on Friday expressed reservations over the government’s reported extension in the Asset Declaration Scheme.
The federal government has introduced the Asset Declaration Scheme, whose deadline at present is June 30. However, Prime Minister Imran Khan has hinted at extending the deadline of the assets declaration scheme.
The IMF has opposed the Asset Declaration Scheme and said it it was “unfair” as it discourages taxpayers.
Speaking to Geo News, IMF’s Resident Chief in Pakistan Teresa Daban said, “The IMF is not in favour of tax amnesties. Cross country experience shows tax amnesties have usually huge costs, such as undermining taxpayers’ moral and sense of fairness that more than offsets the potential short term gains.”
In May, the IMF and Pakistan reached a staff-level agreement on economic policies for a three-year extended fund facility in May.
Under the agreement, Pakistan will receive about US$6 billion for a period of 39 months.
The IMF in its press release had said that it aims to support the federal government's structural reform agenda during the next three years.
"This includes improving public finances and reducing public debt through tax policy and administrative reforms to strengthen revenue mobilization and ensure a more equal and transparent distribution of the tax burden," it said.
A day earlier, sources said the Federal Board of Revenue (FBR) is likely to extend the Asset Declaration Scheme by three months as it struggles to get desired results.
The scheme is likely to get an extension so more and more people can benefit from it, sources said.
However, FBR spokesman said that there will be no extension in the scheme.
Speaking with the state broadcaster, Pakistan Television (PTV) on Thursday about the assets declaration scheme, PM Imran said the people believe that their tax payments would be wasted, which is why his government was making efforts to help the public realise their money would only be spent on them.
"If the people do not pay taxes, we would be unable to pull ourselves out of this quicksand of loans. We need to work together to pull our country out of this quicksand of loans," he said.
"If the public wishes, we can easily collect taxes worth Rs8 trillion. It is now up to the people to decide if we want to work together to help the country sustain itself" independently, he added.
Tax culture could not take off due to prior leaders, PM Imran reasoned, adding that Pakistan's biggest problem was corruption, which leads to inflation and unemployment.
