KARACHI – The dollar price may reach above Rs200, serving a major blow to the embattled economy of Pakistan, as the Federal Board of Revenue (FBR) is putting pressure on exchange companies to pay 16 percent withholding tax.
The fear was expressed by representatives of the exchange firms while talking to a local media outlet. They revealed that FBR is sending notices to them on non-payment of the withholding tax that was revoked in 2016.
If the pressure continues, the exchange companies will leave with no option except passing on the burden on to customers, which may surge the dollar rate above Rs200, they said.
Malik Bostan, chairman of the Exchange Companies Association of Pakistan, told Dawn that FBR had sent notices to the tune of millions of rupees.
Imposition of the sudden tax will increase the cost of a dollar by up to Rs20, he said, adding that the move result in the exchange rate of Rs200 or higher.
Terming it conspiracy against the government that is already facing backlash over currency devaluation, he said that the tax will put massive pressure on the exchange rate.
He also feared that the black market will replace the legal business of the exchange companies if the dollar price crosses Rs200 mark.