Imran Khan urges people to take advantage of tax amnesty scheme

With nine days left for the tax amnesty scheme to end, Pakistan Prime Minister Imran Khan Friday urged the people to declare their assets and help the government in extricating the country out of the debt trap.

In his third address to the nation since the launch of the Asset Declaration Scheme in May, Khan said taxes given by the people will be used to pay back the heavy loans which have become a main hurdle in the country's economic development.

The Asset Declaration Scheme was launched on May 14 and is to end on June 30, but despite his efforts it has reportedly not been able to attract the people.

The scheme offers that the assets within the country and abroad can be legalised after paying a tax at the rate of 4 per cent. The legalised cash assets will have to be kept in Pakistani bank accounts, but if anyone who wants to keep the money abroad, a rate of 6 per cent will apply.

"Until the people do not resolve, along with the government, to extricate itself from these loans, they will not be able to get out of (the debt trap)," Khan said.

He said taxes given by the people will be used to pay back the heavy loans which have become a main hurdle in the economic development.

The national debt of the cash-strapped Pakistan has increased from Rs 6,000 billion to Rs 30,000 billion in last ten years.

Khan sought the cooperation of people in overcoming the tax evasion and said the people should take advantage of the scheme and avoid punishment.

"We have data of everyone who have assets but not paying taxes. We will start taking action at the end of the scheme which gives an opportunity to declare hidden assets," he said.

"Unless the public and the government would not cooperate, the debt trap would not end," he added.

The Prime Minister said national debt increased from Rs 6,000 billion to Rs 30,000 billion rupees in last ten years due to which half of the revenue collected last year was spent on payment of the interest on these loans.

"We are stuck in debt trap, which means we are taking more loans in order to pay the interest on previous loans. We have reached here due to corruption and tax evasion," he said.

He said that the government has set the target of Rs 5,500 billion for tax collection in the budget for the next year.

Khan recalled that Pakistanis were generous as they helped in building cancer hospital. They also contributed massively during calamities like the 2005 earthquake and 2010 floods, he added.

He said Pakistan has potential and Rs 8,000 billion can be collected each year which can help overcome our difficulties.

"This can help us stand on our feet and lift the people out of the poverty trap. We can also improve the future of our children," he said.