FIR registered against National Bank’s divisional head

Official deducted Rs294m on the orders of the FBR without informing the excise dept


Our Correspondent September 23, 2017
PHOTO: REUTERS

KARACHI: After the controversy over direct deduction by Federal Board of Revenue (FBR) from the Sindh government’s account, the excise and taxation department lodged an FIR against the divisional head of National Bank, Karachi Port Trust branch, who deducted Rs294 million on the orders of the FBR.

The case was registered by the deputy director of the excise and taxation department at the Mithadar police station.

In the complaint, the official of the excise and taxation department said that the federal income tax department has been creating bogus demands unilaterally against the excise and taxation department on account of withholding tax and has recovered the amount directly from the account of the provincial government.

"Despite the fact that we don't recover withholding tax, they have deducted the amount from our National Bank account," the official said, adding that the FBR’s inland revenue commissioner wrote a letter to the National Bank divisional head in this regard and later recovered the amount from the provincial government account.

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"The National Bank transferred the amount without informing the excise and taxation department. In the light of the above, it is requested to register an FIR against the divisional head of the National Bank who facilitated this illegal act in the interest of the FBR," the deputy director excise and taxation department said.

After the case was registered, the chief minister ordered the higher authorities to arrest the National Bank official without any delay. "The deduction is totally illegal and against the law," the CM said, adding that the Sindh government will also approach the judiciary against the illegal deduction. The spokesperson for CM House said that the FBR, Karachi has also sent more notices for the collection of Rs3 billion without any concrete evidence, as claims against previous years starting from 2012 in the head of withholding tax.

Sources privy to the development told The Express Tribune that chief minister has also ordered the finance secretary to transfer the government’s accounts from National Bank to Sindh Bank in order to avoid future confrontations.

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