The number of people who pay income taxes in Pakistan is estimated to be roughly two million, while the number of bank accounts totalled 33.5 million on December 31, 2012. DESIGN: FAIZAN DAWOOD
KARACHI: The Karachi Stock Exchange (KSE) has demanded that the federal government review its decision to allow the Federal Board of Revenue (FBR) access to depositors’ bank accounts.
A statement prepared by the taxation committee of the KSE says that the insertion of Section 165 A in the Income Tax Ordinance 2001 will result in “undue harassment from tax authorities.”
Saying that taxpayers/accountholders will become “very vulnerable to the misuse of the powers given to the tax authorities,” the statement claimed that sacrificing the personal confidentiality of accountholders will reduce their confidence in the documented sector.
The number of people who pay income taxes in Pakistan is estimated to be roughly two million, while the number of bank accounts totalled 33.5 million on December 31, 2012, as per the State Bank of Pakistan’s records. In an interview with The Express Tribune on May 20, former caretaker finance minister of Sindh Shabbar Zaidi had said that the federal government should bring these bank account holders into the tax net by letting the FBR use their data to enhance tax collection.
In an interesting turn of events, Zaidi now finds himself on the taxation committee of the KSE, which is strongly opposed to the idea he so enthusiastically proposed.
“I’m not against the idea of the FBR using accountholders’ information to catch tax evaders. But I’m against the mechanism that has been proposed to do so,” Zaidi said while speaking to The Express Tribune on Tuesday. He said the government should refrain from giving the FBR direct access to bank accounts. “An intermediary agency should be put between banks and the tax-collecting body to minimise incidents of harassment,” he added.
The KSE also requested the federal government to reconsider the levy of 0.5% on net moveable wealth under the Income Support Levy Act 2013, saying it will likely lead to an “immense flight of capital” and encourage a parallel economy.
Published in The Express Tribune, June 26th, 2013.
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@SHB: Fortunately the IRS does not have direct access to account holders banking information. To secure the information, IRS must provide the Bank with a Summons. The Bank is also required to notifiy the IRS of individual cash transactions of $10000 or more.
let's the government do their work to end tax evaders and corruption from Pakistan.
let's the government do their work to end tax evaders and corruption.
Access should be extended to Stock Exchange In fact National Clearing should be made withholding agent for the new Asset Tax Stock Exchange is Money laundering factory
KSE must not oppose this move. Here in USA , IRS the tax dept, has all the free hand to check account of any body.When taxes are name of the game, then taxman must have all the power of the law of the land. Nobody likes to pay the taxes. On the other hand no govt can function with out taxes
Good Idea, People Shouldn't be worry if they don't have to hide anything. Now Rich have to choose between keeping the money in the bank and get Taxed or kepp the money in the house and get robbed of everything.
This is beyond ridiculous - like FBR doesn't already know who should be paying taxes that aren't! This basically is a way to squeeze tighter the noose around the necks of people who are legitimately keeping white money. Why should anyone of these bank acct holders pay tax when you know there are so many industrialists and politicians who aren't doing it? Bring them into the tax net before going after small businesses and self employed people who are most likely a majority of the bank acct holders.