Withholding tax on bank transactions: KP business community for immediate withdrawal
The business community has criticized the imposition of withholding tax on transactions over Rs 50,000 and urged the government to withdraw this immediately. They also warned if the government and FBR didn’t accept their demand, would compel to take extreme steps, even go for strike and launch protest campaign against it.
The deduction of 0.6 per cent as withholding tax (WHT) on transaction of over Rs 50,000/, through commercial banks, is disastrous for economy of the country. The government instead of taking measures for broadening existing tax net, it was putting taxpayers and non-tax payers in similar categories, which is very disappointing move, said Khyber Pakhtunkhwa Chamber of Commerce and Industry president, Faud Ishaq while presiding over meeting of various industries, millers, and traders association at the chamber house.
The representatives of Ghee and Cooking oil manufacturing association, PVS pipe manufacturing association, petroleum dealers association, CNG association, fresh fruit and vegetable association, flour mills association along with trade and industries association attended the meeting. The meeting categorically rejected the imposition of 0.6 per cent withholding tax on transactions of over Rs 50,000/- through cross cheques, pay-order, and demand draft in the commercial banks and demanding the Federal Minister for Finance, Ishaq Dar and Federal Board of Revenue Chairman, to immediate withdraw the decision.
The members of business community warned that if the government didn’t withdraw it, they would take to streets and strongly protest it, which could create law and order situation of the government. KPCCI president said the ministry of finance, and Federal Board of Revenue (FBR), should remove existing difference between income tax section 236P and Section 231A. It was needed to be avoided deduction of 0.6 percent over Rs 50,000 transaction for each time. There should be removed imposition of double taxation in the country, Ishaq said.
Ishaq said the business community took a sign of relief, following announcement of incentive package for terrorism affected businesses and industries of KP, by federal government in budget 2015-16. However, he said the federal government and FBR, on the other hand, imposed 0.6 per cent as withholding tax on transactions of over Rs 50,000, which is step to take back the relief from business community.
“Some elements are attempted to create rift between federal government and business community for attainment of their nefarious objectives, and wanted to create difficulties for the government, KPCCI chief opined. He said the chamber has always supported measures for broadening of existing tax net, but the government was committed of double taxation after imposition of 0.6 percent withholding tax on transactions of Rs 50,000 from commercial banks.
