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'Bank accounts be accepted as white money if declared'

RECORDER REPORT

KARACHI: The Council of Textile Associations (CTA) has suggested that all the bank accounts, whether current, savings or term deposits, should be accepted as white money, without payment of any tax just like investment in Privatisation Commission or repayment of defaulted loans if the depositor makes a declaration of the amount of his bank account or the amount invested in savings schemes.

The CTA Convenor SMA Rizvi in his proposals for the government's drive to bring the black money to surface, said that the foreign currency accounts opened before December 16, 1999 and afterwards should be granted immunity so that people might bring as much money as possible from abroad for investment purposes. Notwithstanding, the wrong policies adopted by preceding governments, "we had a big currency weightage in deposits of 11 billion dollars in FCAs", he added.

He pointed out that the biggest impediment in formation of capital and declaration of assets is unjust, retrogressive, un-Islamic and discriminatory 'wealth tax' which was responsible for encouraging black money. It retarded investment in industries and exports for the sake of hardly Rs. 1 billion tax after meeting the collection charges. The successive governments had failed to realise the damage this tax was causing to the expansion of legalised economy.

The CTA convenor suggested that the last date for declaration should be kept as June 30, 2000, to enable the government to carry out a big campaign.

Rizvi cited the amnesty scheme masterminded by a late finance minister and economists of international repute, who identified 22 families which must have now multiplied many times. He wanted to impose farm and agricultural tax.

He pointed out that Rs. 40 billion was siphoned off by the corrupt revenue collecting agencies.

Dr. Mahboob-ul-Haq had also pointed out that Aptma business lords were paying only Rs 200 million as income tax and taking a lion's share from the banks as loans.