The State Bank of Pakistan (SBP) has broken the silence after social media was flooded with several reports claiming that Rs5000 currency notes have been discontinued in Pakistan
Reacting to rumours, Governor SBP Jameel Ahmad said there is no truth in reports regarding ending the Rs5000 currency notes.
Jameel Ahmad told the Senate’s Standing Committee on Finance that SBP is planning a detailed redesign of all Pakistani currency notes, including all modern security features.
The governor said advanced security technologies will be embedded into both the design and structure of the new notes to curb counterfeiting and improve durability.
He added that there is no proposal to discontinue or withdraw the Rs5,000 note.
New designs for currency notes finalised
The governor of State Bank of Pakistan Jameel Ahmad confirmed that designs for the country’s new currency notes have been finalised.
He said that the State Bank Board had approved the designs and sent them to the Ministry of Finance for final approval.
Governor Ahmad made it clear that the new notes will be issued only on the basis of receiving formal consent from the federal government.
Concerns Over Tax Burden
During the meeting of the Senate’s Standing Committee on Finance, the issue of super tax was raised by Senator Abdul Qadir who posed serious questions on it.
He asked himself how citizens and businesses could deal with paying a tax that covers up three or four years in one payment.
Such pressure has the potential of encouraging people to migrate overseas, he warned. Senator Qadir blamed the Federal Board of Revenue (FBR) for its “harassing approach” and proposed to collect the tax in smaller amounts in two to three years.
Sustainability of Revenue Measures
Senator Sherry Rehman echoed concerns for the super tax strategy. She pointed out that the constitutional court had made it clear that the parliament has power to impose this tax.
However, she cautioned that it is not sustainable to tax the same group of people over and over again to raise more money. This will add to the financial burden on citizens.
FBR Offers Flexibility
Responding to the feedback, the FBR chairman said that in some cases instalment options could be allowed. He informed that total super tax collection has reached a level of Rs217 billion.
The chairman also commented that the tax-related alerts sent through calls and messages helped bring another one million taxpayers under registration.
Finance Minister added that he had received such messages from FBR himself.
The session reflected some significant reflections regarding currency reforms and taxes policies while pointing out the increasing concerns about economic constraints for the citizenry and the enterprises.
Also read: When will SBP issue new currency notes?
