The Federal Board of Revenue has violated rules and regulations by withdrawing Rs 851 million from bank accounts of China Harbour Engineering Company Limited as the matter is still pending adjudication. Chairman Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatisation Senator Saleem Mandviwala said this on Tuesday while chairing the meeting at the Parliament House.
"If the FBR loses the case against the company in the high court, then how much will it return to the company," he said while questioning the powers of the FBR to initiate any such action. Member FBR Rehmatullah Wazir briefed the committee members about the relevant laws and said the organisation could withdraw the amount from bank accounts of tax defaulters.
The company is a defaulter of Rs 2.1 billion and the Rs 851 million have been withdrawn from its bank accounts under the given laws, he said. Senator Talha Mehmood, however, said the law was being misused and it should be amended by the parliament to protect interests of business communities and general public. Chairman of the committee said that a large number of citizens have complained about withdrawal of money from their bank accounts by the FBR.
The member FBR, however, defended the law and said if it is withdrawn or amended; the whole tax collection system would collapse. The committee was also briefed in detail on the Pakistan International Airlines Act 1956 and proposed privatisation of the national flag carrier. Chairman of the committee expressed displeasure over the absence of officials from the Privatisation Commission. Chairman of Senate Mian Raza Rabbani had referred the matter of overcharging passengers by Shaheen Airlines and Air Blue during strike of the PIA.
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