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Attempts to recover taxes for which amnesty has been given could erode confidence in policy but not result in any significant recovery of lost taxes according to experts. The government announced it would claw back indirect taxes from the blanket tax amnesty granted by the UNF during its tenure of office.
The finance ministry is currently considering amendments to the Tax Amnesty Law to recover indirect taxes.
A majority of the over 50,000 filings under the Tax Amnesty Act were for income tax related purposes according to Inland Revenue Department.
But the tax collection agency says according to value the indirect taxes are likely to account for a significant figure.
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Inland Revenue Department, which collects all direct and indirect taxes says the government is considering options.
"Now the amendments are brought to restrict the amnesty only the Income Tax," says K Suseelar, Commissioner General, Inland Revenue.
But tax experts say except for eroding confidence the move is unlikely to