FBR asked to take action on fake refund cases
German inflation picks up in January
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.