Govt hints at rescinding amendment to tax law

In an attempt to pacify the opposition, the government has hinted at cancelling the proposed amendment to tax law in the Finance Bill 2016-17.

Dubbed as ‘Maryam’s Law’ by the opposition, it is widely believed that this amendment would allow people to further evade taxes and own foreign trusts without declaring them. Contrary to this is the belief held by FBR and other legal experts that the Clause 23 of the proposed bill would ‘rope in’ all undeclared offshore assets.

However, there is a possibility of misuse of this law by FBR when the government announces amnesty packages for these companies. Another reason why the government wants to make this amendment is because it would facilitate them in getting a membership of Organisation of Economic Cooperation and Development (OECD).

The opposition has bombarded the government with allegations of misleading the public on key economic indicators such as GDP growth rate, inflation rate and investment to GDP etc.

Some of these claims, such as overstatement of GDP growth rate have been substantiated by independent bodies and have increased the pressure on the government.