ISLAMABAD: The Federal Board of Revenue (FBR) does not enjoy powers to issue notices to people for making financial transactions after the passage of five years of time.
Parliamentary Secretary on Finance and Revenue Rana Afzal Khan, while responding to the questions forwarded by the opposition members, including Asad Umar and Abdul Rashid Godil, informed the National Assembly Standing Committee on Finance and Revenue that the FBR had no power to issue notice to any person involved in transfer of funds abroad after the passage of five years.
“In this regard, no law exists which empowers the FBR to take any action on the issue of Panama Papers’ leaks,” he said, adding that work on preparation of a new law is being enacted to restrict the unknown transactions as well as to empower the FBR,” he told the committee.
The committee met here with Qaiser Ahmad Sheikh in the chair to discuss, ‘the Income Tax (Amendment) Bill, 2016” (Ordinance No. XLIX of 2001) (Govt. Bill), Tax imposition on real estate transactions in the light of amendments made in the Finance Bill, 2016-17 by FBR, differential of Income Tax between Commercial Importers and Industrial Importers and other issues.
However, due course of discussion Asad Umar urged the committee to Federal Board of Revenue (FBR) for briefing with regard to Panama Papers. But, Chairman Committee and other PML-N members were of the view that that FBR Chairman had already informed the Committee about the ongoing process in this regard.
Director, National Accountability Bureau (NAB) informed the Committee about the status of the inquiry/investigation regarding NBP Banglandesh scam. He said that investigation on the matter would be completed during the month of September, 2016. The Committee recommended that NAB will submit its report after one month to this Committee.
President, National Bank of Pakistan (NBP) briefed the committee about the performance of NBP. He said that NBP has issued Rs. 96 Billion, as lending in agriculture sector. The committee recommended that NBP would furnish growth/profit comparison statement with other Banks.
The committee members have shown their reservations about the promotions and transfers policies adopted by the NBP. The president, NBP informed that presently, 16000 employees were working in NBP, which is higher than NBP requirement.
The Committee decided that NBP will furnish its recommendations for further reforms/improvements in the NBP. The President, NBP also stated that NBP has developed its automation system.
The Committee Members were further apprised by President, NBP regarding Prime Minister Youth Business Loan (PMYBL). He told the Committee that Rs. 7.7 Billion has been disbursed under this project. The Committee recommended that NBP should enhance its pace for functioning of PMYBL project.
Director, State Bank of Pakistan (SBP) informed the committee regarding the last three years investment made by the Pakistani Companies and individuals with permission of the SBP abroad.
He said that investment abroad is allowed only for those countries that allow repatriation of profits, dividends and capital. He added that applications under equity investment abroad up to $ 5.00 Million are approved by SBP and applications for equity investment abroad above $ 5.00 are recommended to ECC for their approval. The committee deferred agenda item no. iii—vi owing to the request of the Chairman, FBR.
