Chairman Federal Board of Revenue (FBR), Nisar Muhammad Khan on Wednesday said that millions of accounts, properties and transactions are "Benami" in the country and a law has been proposed to deal with them. A meeting of the Senate Standing Committee on Finance presided over by Saleem Mandiviwala met to discuss clause-by-clause Benami Law, which was approved recently by the National Assembly and forwarded to the Senate for its approval. However, the committee could not complete a clause-by-clause discussion. Another sitting would take place to complete the task.
The committee members did not agree to a clause that Benami properties would be liable to confiscation, and suggested to change it with a heavy penalty. The Chairman FBR was unable to satisfy the committee members on concerns with respect to misuse of the law.
The Chairman FBR said that once the proposed law becomes an Act after the approval from the Senate and signature by the President, it would be applicable on Benami transactions of properties, bank accounts, shares etc from retrospective effect because the National Assembly's committee wants so.
Khan said the Benami Law has nothing to do with the Income Tax Ordinance and asked the committee members not to mix it with any other law, saying: "Benami Law must be looked into [treated as] standalone [law]." He did not respond to the questions of Mohsin Aziz on relevancy of London properties with this law and preferred to remain silent. However, Kamil Ali Agha said "before 2006, London properties were Benami" because these were registered with some else's name.
The meeting was informed that this law remained under discussion in the NA committee for over six months and was approved with eleven amendments. Meanwhile, the FBR came under severe criticism for imposing a 2 percent capital value tax for filers and 4 per cent for non-filers on power of attorney in the Islamabad Capital Territory (ICT). Members of the committee disproved tax on power of attorney and asked the FBR to look into the matter as the tax on power of attorney, which does not involve a transaction, was totally unfair. Chairman FBR Nisar Muhammad Khan assured the committee that he would look into the matter in comparison with provincial laws and make necessary changes to bring into uniformity with them in case of any difference.