ISLAMABAD (INP): Businessman Panel of the FPCCI on Thursday said decision to impose withholding tax on bank transactions is unwise at best as it is against the rights of banked population and violation of tax principles. Government should not punish masses, business community, widows, pensioners and other vulnerable for the failure of FBR to broaden tax base to augment income, it said.

The decision termed as extortion by majority of traders would supplement underground economy, contract documented sector, said central leader of the Businessman Panel and former vice president FPCCI Khurram Sayeed. Speaking to the business community, he said that income and consumption is taxed around the world but here government has found a novel way to milk masses which is not acceptable. He noted that some banks are taking the benefit of the prevailing confused situation to get undue advantage which is illegal as well as immoral.

WHT on bank transactions will in no way bring rich and super rich in the tax net and will not promote documentation of the economy, he noted.

SECP-SBP discuss stability and smooth functioning of financial sector

ISLAMABAD (INP) - Twenty third meeting of the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) Coordination Committee was held on at SECP head office Islamabad. Ashraf Mahmood Wathra, Governor SBP along with Saeed Ahmad, Dy. Governor SBP and other senior officials represented the SBP. Zafar Hijazi, Chairman headed the team from SECP side along with all Commissioners and senior officials.

The chairman SECP reiterated that effective enforcement of relevant rules and regulations as well as institutional strengthening would be major area of focus for the SECP as it embarks upon a new era of sustainable development for the capital market and the corporate sector in Pakistan. The Governor SBP stated that regulatory objectives of the two regulators would be better served through ongoing consultative process between the SECP and SBP. He also stressed the importance of regular contact between officials of the two institutions at all levels.

The report “A study of the Pakistan Stock Market crises of 2008” submitted by the Committee constituted by the SECP “to study the 2008 Stock Market crisis” also recommended the development of procedures for improved coordination between the SECP and the SBP. It is for this reason that the SECP-SBP Coordination Committee meetings are held once a quarter and include high level officials from both institutions.