ISLAMABAD: The Federal Board of Revenue (FBR) has pressed for early passage of the Benami Transactions (Prohibition) Bill, 2016 with an observation that the board is totally toothless without powers.
Speaking in the meeting of the National Assembly Standing Committee on Finance and Revenue, the FBR officials, including Chairman Nisar Mohammad, Member Inland Revenue Policy Rehmatullah Khan Wazir, Member Customs Nasir Masroor Ahmad and others were of the view that early passage of the said bill would enable the board to take affirmative actions against people involved in making fake or benami transactions.
To a question whether this bill would also enhance FBR’s jurisdiction across the globe, Nisar was of the view that with the powers delegated in this bill, the FBR would become eligible to conduct global operations against money launderers as well as money traffickers with anonymous identities.
He said that benami property was a matter of grave concern for the tax authorities, adding that the past practice and experience showed that benami transaction had often being resorted for further illegal or questionable objectives. He added that this bill was being introduced to deal with the problem of tax evasion and black money, especially in the real estate sector. He said that subject legislation will strengthen the law. The committee decided that further discussion on the bill would be held in the next meeting.
The further deliberations on the bill have been deferred due to criticism of the opposition members. The committee also decided to get a detailed briefing from the FBR on Panama Leaks next week.
Nisar Mohammad Khan further said that FBR had never fixed target of two million new taxpayers in the Voluntary Tax Compliance Scheme (VTCS), adding that the FBR added only 8,000 new taxpayers in the tax base by dint of the scheme.
While considering the matter with regard to discriminatory SRO-1125/2011 and its discrepancies, the committee recommended that differential of withholding income tax between commercial and industrial exporter should be reduced.
The committee considered the petition regarding survival of Pakistan’s steel industry. The committee was informed by the FBR chairman that the board had already given a relief package to the steel industry.
Meanwhile, a meeting was convened in FBR, wherein it was decided that the matter should be forwarded to ministry of commerce, as the same relates with them. The committee recommended to the ministry of commerce for an early response in this regard.
The committee considered the petition with regard to the federal encroachments on provincial taxes/income tax on rental income. The committee members were of the view that already existing system for collection of income tax should be continued on rental income.
While considering the matter regarding hardships facing to local manufacturers of esters of acetic acid due to customs tariff anomaly. The chairman informed the committee that said matter has already been taken-up by the FBR.
