Dollar demand wanes 20pc

KARACHI: Dollar demand waned one-fifth since the government decided to withdraw the notices for the recovery of federal excise duty from exchange companies, Malik Bostan, president at Forex Association of Pakistan, said on Saturday.

Bostan, in a statement, said increase in the country's foreign exchange reserves resulted in ease of dollar value in the open market. 

He appreciated the Finance Minister Ishaq Dar for taking a prompt action against dual taxes imposed by the Federal Board of Revenue. Bostan said the finance minister assured them to withdraw federal excise duty in the budget for the next fiscal 2016/17. 

“In the next budget FED withdrawal will help strengthen rupee value,” he said. “In case the government allows the exchange companies to start transactions with 400 transfer companies of the world it will help in reducing demand for foreign exchange. Besides, it will generate employment for 25,000 people.” The forex dealer urged the tax authorities to avoid imposing unnecessary taxes. He also urged the provincial revenue authority to withdraw notices issued against sales tax on services.