The Pakistan Yarn Merchants Association has demanded withdrawal of FBR powers for online access to bank database under section 165A of the Income Tax Ordinance as it creates panic and harassment among the tax payers and encourages out of bank cash transactions and black economy, and defeats documentation of economy.
Pakistan Yarn Merchants Association Zonal Chairman Sheikh Muhammad Qasim said this while talking to media on Wednesday.
He said that powers under section 165A of the Income Tax Ordinance were like a hanging sword for the tax payers and could be misused by some irresponsible elements. Ultimately it hampered the growth and expansion of business and economy of the country, he said.
He said this provision of law was unnecessary as the tax officers already had powers to call bank details from the tax payers. He said the State Bank of Pakistan had also seconded this demand through its budget proposals. Sheikh Muhammad Qasim urged the government to create business-friendly culture in the country facilitating growth of trade and industry by providing incentives and concessions to businesses. He pointed out that textile sector which was mainstay of their economy was under great stress and exports of the country were continuously sliding downwards over the last two years. He emphasised the need for cutting down the cost of doing business, providing cheaper inputs to enable the value-added textile sector to increase its productivity and earn more foreign exchange for the country.