Order to stop bank accounts freezing without prior notice welcomed

Lahore – The Friends of Economic and Business Reforms (FEBR) has welcomed the first order of Syed Shabbar Zaidi in the capacity of the Chairman Federal Board of Revenue (FBR) to stop freezing of bank accounts without his nod, expressing the hope that the decision would remove trust deficit between tax-collectors and taxpayers, besides achieving revenue collection targets through broadening of tax base.
In a statement issued here on Saturday, President FEBR Kashif Anwar, while congratulating him to resume the charge of honourary Chairman of the FBR, observed that it is a good news for the taxpayers that the new chief has directed the tax agency to devise a mechanism to freeze bank accounts in case of a dispute, directing authorities against freezing accounts without his prior approval and notice to the account holder.
In his first order in the capacity of the FBR chairman, Zaidi directed all chief commissioners of Inland Revenue to inform the account holders 24 hours prior to freezing their accounts if they must do so.Kashif Anwar explained that there is already a provision for freezing of a bank account as the last recourse in case of a dispute between the account holder and institutions.
He asked the FBR chairman to share his vision to revamp the tax system and machinery, stressing the need to shift from manual to a completely automated system to facilitate taxpayers. FEBR President Kashif Anwar hailed the decision of the government for bringing a professional person on such a vibrant post to steer the country out of the challenges being confronted by the FBR.
He hoped that the new chairman would take long as well as short-term measures to gradually enhance Tax-to-GDP ratio.
He said that people had lost trust in the tax collection system, as they have a trust deficit with the FBR and the tax collection system and the new chief has to bridge this trust gap. He also stressed that the issue of fixing Pakistan’s revenues was a matter of the country’s survival.—INP