After availing Voluntary Tax Compliance Scheme (VTCS) one can become a respectable registered tax payer, as this is a business-friendly initiative of the government.
This was Former LCCI Vice President Kashif Anwar Daily Pak banker here the other day. He said VTCS was a giant leap towards expansion of tax net. He said that Pakistan needed resources for health, education and infrastructure projects and it was possible only through bringing untaxed sectors into the tax net. Former LCCI Vice President Kashif Anwar who is an expert on the scheme, said that Voluntary Tax Compliance Scheme was not compulsory, it was voluntary and if any trader did not want to avail, he could file normal return. This was for individuals, Association of Persons (AOPs) and wholesaler or dealer who was not registered before availing benefit of the VTCS. He added this is for genuine businessmen who cannot declare their capital because of any reason. They can declare now without any
problem. This is not for manufacturers, importers, sales tax registered persons either trade individual or AOP, dealer, distributor or wholesaler and sectors in services industry." Kashif said this was working capital whitening scheme and not assets whitening scheme. For assets one must had a source to declare voluntarily in Wealth statement.
He said that one could not purchase asset or property from this working capital, no withholding tax adjustment or tax credits against tax payable for tax year 2015 to 2018. He said that VTCS gave facility to take benefit of imputable income in wealth or accounts on the basis of tax paid during tax years 2016 to 2018.
Throwing light on the benefits of Voluntary Tax Compliance Scheme (VTCS), he said that after availing this scheme one becomes a respectable registered tax payer. He said that there would be a simplified one page income tax return as per our demand and the beneficiary would not be registered in sales tax if he qualified under Rule 6 of Chapter II of Sales Tax special procedure rules where sales tax was collected on electricity bills and other conditions, would not submit previous returns; would not receive notice; would not prepare wealth statement for tax years 2015-2018 etc.