http://www.onlinenews.com.pk/details.php?id=188725

Islamabad: International tax consultant Dr Ikramul Haq on Monday said government抯 decision to approve the SECP proposal on revamping the Capital Gains Tax allowing investors to inject money without declaring the source of income can facilitate money laundering.

Talking to Dr. Murtaza Mughal, President of the Pakistan Economy Watch (PEW), he said that revamping CGT is violation of the Anti-Money Laundering Act, 2010 and international treaties signed by Pakistan, a PEW statement said.

The decision is to facilitate influential elements to conceal their source of illegally obtained money; it will bring a bad name to country and may irk foreign donors, he said.

Dr Ikramul Haq, who is also expert on international money laundering operations and drug economy, said that the decision will hurt much-needed revenue generation initiatives.

He described the recent surge in the stock market a tactic by influential brokers to misguide masses.

Dr Ikramul Haq observed that giving legal cover to the black money cannot be justified under any circumstances.

At the occasion, tax expert Huzaima Bukhari said that such steps can transform Pakistan into one of the global hubs of money laundering.

Banking consultant Mohsin Rafique said that role of a NRO banker is the Reshma Rental Power Plant case remained unnoticed.

Dr. Murtaza Mughal said that small brokers are losing interest in the business; total number of registered brokers stood at 276 by the end of financial year 2011 as compared to 299 in 2010.

He said that a top official who tried to safeguard interests of masses was shown the door during Eid holidays while every market crash left a powerful broker as owner of a bank.