Karachi: The Pakistan Stock Exchange Brokers Association has written separate letters to the Federal Board of Revenue and Security and Exchange Commission of Pakistan complaining against FBR’s field officers for misbehavior and malpractice.
PSX Brokers Association has accused the taxmen of having indulged in mismanagement of withholding taxes, bogus demand and seizure of bank accounts inspite refund intimations.
This is a worrying development as investment trend at the PSX is getting damaged in light of seizure of bank accounts and withdrawal of cash by the FBR without sending proper demand notice.
Secretary PSX Brokers Association, Ghulam Mujtaba said that these withdrawals of cash and seizure of bank accounts was uncalled for and illegal. He added that the FBR should send a show-cause notice for tax recovery purposes and time should be given to brokers or clients against any recovery.
Mujtaba disclosed that brokers millions of rupees were stuck-up for refund purposes and they have to submit and fill number of documents to make the claims, which remain unheard. An equity dealer commented that due to the seizure of accounts by the FBR and uncertainty in the political space had affected the stock exchange and was on a decline as a result of it.
He lamented that FBR field officers aren’t even sparing the client accounts, which the brokerage houses are required by law to maintain with the SECP. Mujtaba maintained that due to such scrupulous behavior on part of FBR, the businesses of brokerage houses had been completely ruined.
The complaint filed by the brokers association is linked to the Corporate Regional Tax Office (RTO), Karachi whose officers are alleged to have been involved in starting these fake tax demands and are said to have been promoted to Large Taxpayer Unit in the city.
FBR Spokesman, Muhammad Iqbal said the FBR doesn’t authorize malpractice by its officers and action is taken on those if needed. Iqbal remarked he wasn’t aware of the brokers complaints and will carry due investigation into the matter.
