Call to handover refund system to SBP

KARACHI:The refund system should be automated and its responsibility should rest with the central bank to reduce complaints and corruption and improve the economic situation.

This was demanded by Convener FPCCI Central Standing Committee on Insurance said Dr Murtaza Mughal in a statement issued today. FBR seems to be more interested in collecting refunds than taxes which is damaging fragile economy, he said.

He said that the government was trying hard to inject new blood in the economy and restore the confidence of the business community but the tax mechanism is working against it. Unrealistic tax targets had compelled the FBR to strangulate the business activities through highhandedness to show performance, he added.

Mughal, who is also President of the Pakistan Economy Watch, said that FBR continued to issue SROs which violated the government’s intention to spur growth. He said that recently SRO 889 had been issued for surveillance of factories which was being opposed by the industrialists as it would trigger harassment, corruption and litigation.

Similarly, through two SROs, banks had been directed to report anyone withdrawing one million rupees or more and depositing ten million rupees or more while real estate agents have been directed to report all the sales and purchases to FBR.

These SROs will damage the realty sector, discourage investment and may reverse the gains made through the construction package, amnesty scheme and other incentives offered by the government to spur growth.

He said that all over the world, the real estate market was kept insulated from fear, raids, unnecessary audits but here its different which is one of the reasons Pakistanis ignore the local market and invest in the realty sector of other countries.