The Pakistan Economy Watch (PEW) on Friday urged the Supreme Court to take action against those who had put their money in tax havens in numerous unnamed bank accounts.
“The honest politicians and civil society should push the government to discharge legal duty by signing a deal with the Swiss government to recover the lost revenue and stolen funds which are badly needed at home. Putting the critical issue of rampant corruption on the backburner will continue to weaken the country,” warned PEW President Dr Murtaza Mughal.
He said tax amnesty schemes were not adding significantly to government coffers but encouraging big-time tax evaders and their helpers.
“The idea behind such schemes is to unearth huge amounts of undeclared money but it has become controversial, questionable and useless. The schemes aimed at retrieving the lost revenue, exempt offenders from punishment and help those who assist the wealthy hide their taxable incomes,” he added.
He said these schemes were flawed on several counts and raised serious questions as far as moral and social aspects are concerned. They offered incentives to individuals and companies for keeping their wealth undeclared. Dr Mughal asked policy makers to not ignore the dangerous effects of these policies on moral fabric of the society. “Such schemes may give a short-lived boost to our ailing economy but will not help to curb corruption and tax evasion,” he added. He said that influential people generate around $15 billion of black money every year, while undisclosed cash is estimated to stand at $200 billion. Many problems that we are facing today can be resolved if governance is improved. Offering incentives for declaring undisclosed incomes is not a solution; it sends a message that the government is ready to condone tax evaders and will pursue honest tax payers,” he said and encouraged the media and civil society to raise their voices against corruption. He said that inaction by the government amounts to sponsoring corruption.
