ISLAMABAD: The Cabinet Committee for Disposal of the Legislative Cases (CCLC) has rejected to give powers of federal government to the Federal Board of Revenue (FBR) through the Benami Transactions (Prohibition) Act 2017.
Dr Mohammad Iqbal, (Member) Inland Revenue Policy, informed the Senate Standing Committee on Finance that the CCLC had observed that the powers of the federal government cannot be delegated to any authority.
He said the FBR had proposed to the federal cabinet to delegate its powers to the tax authority under the Benami rules. The draft rules had been submitted before the federal cabinet that referred them to the CCLC for vetting.
Dr Iqbal said that the CCLC took the decision in the light of the August 2016 judgment of the Supreme Court that said the federal government was the collective entity described as cabinet, constituting the prime minister and federal ministers.
The FBR wanted the federal cabinet to give it a free hand in the appointment of adjudicating authorities and constitution of the appellate benches to implement the Benami law.
Through the Finance Bill of 2017, the then finance minister Ishaq Dar had obtained the powers of the federal cabinet and parliament in fiscal matters. Under the same strategy, the FBR was seeking more powers.
The FBR’s member policy said that the new position about the CCLC observation had been conveyed to the prime minister in his capacity as finance minister. He said the prime minister had directed the FBR to amend the draft rules accordingly and a new summary would be sent to the federal cabinet for approval.
