close
Friday March 29, 2024

Senate passes bill to prohibit benami accounts

By Mumtaz Alvi
January 18, 2017

 Hamdullah asks chairman to take notice of empty liquor bottles

at Parliament Lodges

ISLAMABAD: The Senate on Tuesday passed the government-sponsored Benami Transactions (Prohibition) Bill, 2016 aimed at prohibiting people from holding assets and properties under others or fake names with a treasury senator abstaining from voting.

Leader of the Opposition in the Senate Aitzaz Ahsan said they were happy about the piece of legislation, as it also covered those who hide their assets and properties in the name of their daughters or sons.

The bill, which will come into force at once, gives stringent powers to the Federal Board of Revenue (FBR), allowing the authorities to raid and have full access to any premises, place, account, documents or computer etc. with prior notice to inquire the accused.

The opposition, which enjoys majority in the 104-member House, pushed through an amendment, moved by Aitzaz Ahsan to substitute Clause 3 of Article 1 that stated, “It shall come into force on such date as the federal government, may, by notification the official gazette, appoint.”

According to the amendment, the bill should come into force at once after its passage from parliament. It was adopted by the House with 18 votes to 16, while Lt Gen (retd) Salahuddin Tirmizi of the PML-N from Mansehra abstained from voting.

The courage shown by Senator Tirmizi brought a smile on the face of the PPP Senator Farhatullah Babar, who speaking on a point of public importance, appreciated the bravery of the general.

“I appreciate the courage shown by my friend General Salahuddin, who despite sitting on treasury benches, didn’t vote for his party. This should be the spirit of every democrat and it’s called the strength of character, which compelled him to act according to his own conscience,” said Babar.

However, in response, Senator Babar faced interesting remarks from Senator Mushahidullah Khan of the PML-N, who said General Tirmizi demonstrated whatever he thought was right. “We are anxiously waiting for the big day when Senator Babar will follow suit,” he quipped.

According to statement of objects and reasons, property held benami has been causing concern to tax authorities and the past practice and experience has shown that benami transactions have often been resorted to for furthering illegal or questionable objectives including evasion of taxes. Assets, which are taken through illegally-earned money, can be used for tax evasion or something more serious like financing terrorism. It further stated that the bill will help dealing with problems of tax evasion and black money, especially in the real estate sector, and to target transactions that are carried out in other people’s names.

“One of the major objectives of the bill is to put an end to benami transactions and to empower the government to recover such property,” it said.

Later, speaking on a point of public importance, Senator Hamdullah urged Raza Rabbani to take notice of alleged empty liquor bottles found at the Parliament Lodges. “Empty liquor bottles could be seen everywhere in the Parliament Lodges. Our children are asking us who are consuming liquor,” he noted.

When the Senate chairman wanted to bar the enraged JUI-F MP from making a controversial statement on the floor of the House, he said: “Why do you stop me from talking whenever I highlight the issue of empty liquor bottles in the Parliament Lodges.” Rabbani explained he wanted him to discuss the issue with deputy chairman Senate at his chamber as the lawmakers should not raise such issues in the House, to which Hamdullah said that he wanted to bring the issue in his notice as consuming liquor was shameful.

“Why would I take up the issue with deputy chairman? I want you to take notice…if a contractor can be hired to catch rats, why can’t you hire a contractor to take notice of liquor in the lodges,” he added.

The law minister told the House that nothing had been finalised about a general amnesty scheme, adding that the idea was floated by the Senate Standing Committee on Finance headed by Senator Saleem Mandviwala.