Efforts under way to evolve uniform law: Benami transactions in provinces
By Our Reporter
ISLAMABAD, May 9: Adviser to the Prime Minister on Finance and Revenue, Dr Salman Shah, here on Monday directed the Finance Division to circulate the draft of Benami law prepared by Sindh government among other provinces to create consensus on the issue. Mr Shah was presiding over a meeting with senior provincial revenue officials regarding lawmaking for Benami properties including movable and immovable properties especially the agricultural land.
Mr Shah appreciated the input of Sindh government on the issue and also inquired from other provinces about the developments on their drafts of Benami law. The representative of Punjab and Sindh apprised the minister about the development taking place on the issue and assured him that they would soon complete their drafts.
They said they would also study the draft prepared by Sindh. Provinces are focusing on the draft law with regard to agriculture land and the massive Benami transactions taking place at the provincial level.
Mr Shah asked the provinces to come up with solid proposals and that the draft must contain measures which could put an end to Benami at the provincial level. He said that the federal government will consider legislation for Banami in consultation with the relevant quarters.
During the meeting the apprehension of the International Monetary Fund (IMF) and some other international donor agencies regarding the movement of black money in the form of Benami were also discussed.
The meeting observed that the need for a uniform law on Benami had arisen to curb the tax evasion, check money laundering and transfer of funds to terrorists’ organizations. The international donor agencies have times and again informed the Pakistani government that properties are held in the name of other persons or remained without owners and there were possibilities that terrorist network which was involved in Afghanistan could have moved its capital to this business here after their fall in Afghanistan.
The meeting was attended by Minister of State for Finance, Omar Auyb, Mir Asim Kurd, Revenue Minister of Balochistan, Member Board of Revenue Sindh, Mohammad Qasim Lashari, Member Board of Revenue, Punjab, Javed Malik, and Mir Iqbal Hussain, Senior Joint Secretary, Finance Division.
It is to be mentioned that following the directives of the Securities and Exchange Commission of Pakistan (SECP), the Central Depository System (CDS) has prohibited group accounts from March 31. The commission is also trying to implement the Know Your Client (KYC) principle in order to regulate the capital market and ensure transparent transaction
The State Bank of Pakistan (SBP) and the Central Board of Revenue (CBR) and SECP are trying to implement laws against money laundering as soon as possible. The law on Benami, however, has taken more time because after the 9/11 and the government’s decision to join the coalition against terrorism, the country was expected to come up with speedy laws to prevent this type of transactions and investigate the existing ones.
