Karachi -

The apex body of trade and industry, Federation of Pakistan

Chambers of Commerce and Industry (FPCCI) has sharply reacted over the contemplation by Federal Board of Revenue (FBR) to impose tax on the inflows of foreign exchange through remittances.

President FPCCI Zubair Ahmed Malik said remittances by the overseas Pakistanis have rescued Pakistan from default and instead of offering some incentives to the remittances through legal channels the FBR is likely to open up avenues of illegal means of remittances.

He said that imposition of tax on remittances of foreign exchange, people would turn to illegal channels particularly through unregistered agents. He said that the remittances sent home by overseas Pakistanis over the last few years had registered phenomenal growth.

The remittances grew by 17.73 percent in 2011-12 to the historic high of $13.18 billion from $11.2 billion in 2010-11. The growth was 25.57 percent as compared to two fiscal years of 2010-11 and 2009-10, he added that this level was expected to reach $15 billion in next year but slapping the levy on this most important source of foreign exchange could seriously hurt the interest of the country.