KARACHI: The Pakistan Banks Association (BPA) termed Section 165A (access to banking information) of the Income Tax Ordinance irritant that has been hampering the Federal Board of Revenue (FBR) drive towards documentation and promoting informal and parallel sector to the economy. According to PBA budget proposals, a new section 165A of the Ordinance was added through Finance Act, 2013. It has created all kinds of risks for the customers of the banks.
Under section 165A: Furnishing of information by banks.- (i) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange Regulation Act, 11947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject every banking company shall make arrangements to provide to the Board in the prescribed form and manner,
The PBA proposed that the section 165A should be deleted from law.
Under existing law, the explanation:For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.
