Federal Finance Minister Ishaq Dar has assured the exchange companies of the country that the government would not impose any new tax on their businesses in the coming budget of fiscal year 2016-17.
Dar informed Pakistan Forex Association President Malik Bostan that the government is looking ways to provide them incentives in the forthcoming budget.
The finance minister has directed the Federal Board of Revenue (FBR) to immediately withdraw the notices sent to the exchange companies for imposing federal excise duty from July 1, 2013.
The president of Forex Association further demanded Sindh Chief Minister Syed Qaim Ali Shah to immediately withdraw the notices sent by the Sindh revenue department to the forex companies for imposing sales tax so that the local currency could be stable in the open currency market.
He informed Pakistan Today that the Sindh government has not yet retracted its decision to impose new taxes. He has sent a written complaint to Sindh and federal governments in this regard, he said.
After the finance minister’s decision, the demand of the dollar in the open currency market decreased on Saturday and stood at Rs 105.40.
“The dollar would further drop against the rupee from Monday as there would be no demand of this currency in the market,” said Bostan. The market players jumped into the dollar business as the federal and Sindh governments have sent notices to the exchange companies, he added.
He said if the government allows the exchange companies to open their branches abroad or sign agreement with 400 forex companies worldwide, the remittances of the country can increase many fold.
The exchange companies have dumped $10 billion in the interbank market in the last six years, he said.
