ISLAMABAD: Members of the Senate Standing Committee on Finance have accused the Federal Board of Revenue (FBR) of harassing people by serving them tax notices against their returns filed online.

Soon after the proceeding of the committee meeting, presided over by Saleem Mandviwala started, Senator Kamal Ali Agha pointed out that he was served a notice by the FBR against his online return for not mentioning his vehicle in the tax return. Agha has taken the notice and sent the return he had filed to the chairman FBR and stated that this vehicle against which the notice was issued was mentioned on top of his return.

He said that this was harassment by the FBR and if this is happening to a senator what about the common man. He said that the notice was served to him under Section 111 which was final and he would be facing a penalty.

The committee sought detail of notices served to taxpayers against their returns filed online.

He shared details of his online tax returns with the committee that were filed before the deadline.

No extension of income tax return filing deadline: FBR

State Bank of Pakistan (SBP) Governor Jameel Ahmad on the issue of LC stated that there is no problem in opening LC as only permission on import of 20 per cent products is required. He added that the limit of LC has recently been increased from $50,000 to $100,000. He said that increase in the budget deficit and current account deficit led to volatility in the market.

He added as a result of the decline in the inflows of the banks, there was pressure in the market and some customers were charged more than the reasonable premium. We are investigating the matter and after completing the inquiry in the ongoing, action would be taken against those commercial banks who have charged the customers more than reasonable.

In reply to a question about whether the excessive money charged by the banks would be refunded to the customers, the SBP governor; however, stated that such a move may result in discouraging private banks from opening of LCs.

He said that there should be some incentive to the banks.

Senator Mohsin Aziz and others said that even these days, the difference between inter-bank and open market is between Rs25 to Rs30 and expressed the fear that this might be getting wider in the days to come.

Minister of State for Finance Aisha Ghous Pasha said that the maximum fine would be imposed on those banks which were found overcharging.

Senator Fida Muhammad raised the issue of opening of LCs at higher or appreciated rates by the traders. The committee was of the view that strict notice must be taken against banks that fall in this category.

Chairman Committee Senator Saleem Mandviwala stated that the committee has raised the matter in the previous meetings and as a result an inquiry is being conducted by the SBP to address grievances.

On the public importance matter raised by Senator Kamran Murtaza with regard to daily wager staff deputed in the Customs department, the chairman FBR said that the FBR has hired 30 local people for three to six months period on daily wages for helper, loading and unloading of goods but the services of 15 of them were terminated after they were found involved in malpractices.

On the issue of tobacco growers and local cigarette manufacturers in the Khyber-Pakhtunkhwa, the Minister of State for Finance has assured the committee of the ministry’s support and said that all-out efforts will be made to ensure that matters take the right course.

While taking up the matter of issues related to the import of vintage cars in Pakistan, the committee was of the view that unnecessary restrictions in this regard are uncalled for and efforts must be made to facilitate this trade. The committee was informed that there were no restrictions imposed by the Ministry of Finance and Revenue in this regard.

About the details of containers stuck at Port Qasim due to Customs; the committee underlined the need for the entire backlog to clear at the earliest. It was asserted that a more humane attitude towards demurrages must be held so that traders are facilitated. The committee was assured that Customs has already given a 40 percent waiver in demurrage charges that is sure to facilitate the clearance process. The Committee directed the ministry to formulate a committee to probe the matter in detail and submit a compliance report once the enquiry is completed.

The meeting was attended by senators, Mohsin Aziz, Kamil Ali Agha, Dilawar Khan, Faisal Saleem Rehman, and Hidayatullah, and senior officers from the Ministry of Finance and Revenue, the FBR, the SBP.

Senators Kamran Murtaza and Fida Muhammad attended the meeting while pursuing motions and points of public importance that were deliberated upon by the committee.

Copyright Business Recorder, 2022