Daily Times

ISLAMABAD: Senate’s Standing Committee on Finance Chairman Saleem Mandviwala on Thursday said the Federal Board of Revenue (FBR) did not know that how many people are taxpayers out of total 535,000 foreign currency account holders.

“If FBR cannot investigate even a single case through the Protection of Economic Reforms Ordinance 2001 then this type of ordinance should be kept in cold storage,” he added.

Under the chairman, the committee deliberated on Protection of Economic Reform Amendment Bill 2016 for third time. Manviwala has tabled the bill.

FBR Chairman Nisar Muhammad Khan said, “We just ask the source of income to those people who have foreign currency accounts because Foreign Currency Ordinance 2001 restricts us.”

The FBR cannot investigate those foreign currency accounts which were opened before 1999, he said.

Member Inland Revenue Rehmatullah Wazir said banks are not providing information regarding the foreign currency accounts that is why the FBR could not move further on this issue.

The chairman asked about the number of foreign currency accounts registered with the State Bank. He was told that there are 5 million and 35 thousand foreign currency accounts in the country.

Senator Mohsin Aziz said, “There was bad intention in making the Protection of Economic Reforms Act in 1992. We want to end the corruption and white money through the amendment in protection of economic reforms bill.”

FBR Chairman Nisar Muhammad Khan said, “We don’t have any objection of your bill.”

Mandviwala told State Bank officials, “If you have any objection in this bill let us know otherwise committee will approve this in next meeting.”

The State Bank officials had informed the National Assembly’s Finance Committee in September that Pakistani nationals had transferred more than Rs 800 billion to foreign countries during the last five years through foreign currency accounts, but the bank did not know the purpose behind the money transfer. Moreover, $601 million were sent abroad with the permission of the ECC in the last three years, the officials had informed the committee.

The Water and Power Ministry informed the committee that the government had decided to give Rs 480 billion circular debt to IPPs so that the amount was given to IPPs on 28 May.

Senator Kamil Ali Agha told the ministry officials that auditor general of Pakistan had raised 15 objections on these payments. “What is the ministry’s narrative in this regard?” Agha asked.

Officials said, “We had given answers to audit and other forums on these objections and we will provide the committee as well.”

The body chairman asked the FBR officials whether they had the notification of sale tax exemption given to IPPs.

Wazir replied that the FBR slapped 17 percent sales tax on everyone and the tax body did not give any exemption to any company. He added, “We don’t have notification yet and we will give it to next meeting.”

Upon this, the chairman asked him to submit the notification and reply to objections soon.