The Pak Banker

FBR asked to take action on fake refund cases

German inflation picks up in January

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Inflation in Europe's largest economy Germany picked up in January, preliminar­y official data showed Thursday, driven by a bound in energy price growth.

Prices were 1.7 percent higher than a year before, federal statistics authority Destatis said, up from a 1.5 percent pace in December. Until the end of 2019, price growth had been slowing over several months.

Measured using the Harmonised Index of Consumer Prices, the European Central Bank's preferred yardstick, inflation picked up 0.1 points, to 1.6 percent. By far the biggest accelerati­on in price growth came in energy, leaping from - 3.7 percent in November and - 0.1 percent in December to a 3.4 percent increase in January.

Meanwhile food price inflation picked up slightly, while the pace of home rental price growth held steady.

In pursuit of higher inflation, the ECB has pumped 2.6 trillion euros ($2.9 trillion) into the eurozone economy since 2015 in "quantitati­ve easing" (QE) bond-buying programmes, and set interest rates at historic lows. By loosening the supply of credit, the Frankfurt institutio­n hopes to power growth and, in turn, boost inflation towards its just below 2.0 percent goal.

But across the 19-nation eurozone, price growth reached just 1.3 percent in December, and is forecast to pick up to just 1.6 percent by 2022. Under new chief Christine Lagarde, the ECB has launched a review of its monetary policy strategy, which could alter the tools it uses to pursue its inflation target or even make changes to how the goal itself is defined.

The Federal Tax Ombudsman (FTO) has recommende­d the Federal Board of Revenue (FBR) to direct the concerned Chief Commission­er Inland Revenue (IR) to investigat­e and identify the officials involved in registrati­on of fake Registered Person (RP) and initiate disciplina­ry/criminal action against those involved.

According to an FTO order issued here Thursday, the FTO on its own motion had investigat­ed irregulari­ties committed by the FBR field formations in processing and sanctionin­g of bogus sales tax refund during period 2011-14, identified by the Directorat­e of Intelligen­ce and Investigat­ion-Inland Revenue (I&I-IR).

According to the order, "Red Alerts" were issued to the field formations concerned, but neither any action was initiated against the fake claimants and their connivers in the department, who were involved in bogus registrati­on, processing and sanctionin­g of fraudulent refund and issuance of refund cheques, nor was any action proposed against the related officers/officials of bank branches concerned and PRAL management.

It observed that a countrywid­e investigat­ion against issuance of bogus refunds was carried out by the Directorat­e General I&I-IR FBR. After painstakin­g exercise, the I&R-IR unsearched copious cases, where fake RPs registered with the connivance of the staff, claimed on the basis of fake and flying vouchers, refund and in many cases get away with fraudulent refund, causing colossal loss to already cash starved exchequer.

The FTO in its finding observed failure of the department to initiate action against the person(s) and officials involved in registrati­on of fake RP and retrieval of refund already issued prior to issuance of Red Alert, is tantamount to maladminis­tration in terms of FTO ordinance.

It recommende­d FBR

to identify the officers/officials involved in processing on the basis of fake and flying vouchers and issuing refund of sales tax pertaining to tax period September and take appropriat­e criminal/disciplina­ry action against them. The FBR was also recommende­d to take appropriat­e action including criminal proceeding­s leading to prosecutio­n of RP and recovery of refund amount, swindled from public exchequer. It has been asked to submit report of compliance within 45 days.

Meanwhile, Special Assistant to the Prime Minster on Informatio­n and Broadcasti­ng Dr. Firdous Ashiq Awan called upon the media to properly project the austerity initiative­s of Prime Minister Imran Khan.

Talking to media outside the Parliament House, she specifical­ly pointed out a fake news about increase in PM's remunerati­on and added PM Imran Khan took the initiative to reduce expenditur­es of PM House with its strict implementa­tion.

 ?? -APP ?? President Dr. Arif Alvi chairing the 2nd meeting of the Federal Task Force on Population at the Aiwan-e-Sadr.
-APP President Dr. Arif Alvi chairing the 2nd meeting of the Federal Task Force on Population at the Aiwan-e-Sadr.

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