ICCI calls for withdrawal of advance tax on bank transactions

Islamabad
The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to immediately withdraw 0.6% advance tax on banking transactions of Rs50,000 and above for non-filers as it has created problems for businessmen and would badly affect business activities in the country.
ICCI President Muzzamil Hussain Sabri said that the government should have taken business leaders of the country into confidence before imposition of this new tax as it has created disturbance in the business community.
He said that the government should also withdraw enhancement of sales tax from 2% to 3% on registered exporters and 5% on non-registered exporters and grant zero-rated facility to exported-oriented products.
He said FBR’s Intelligence Department has started raids on shops which has created harassment in the business community and stressed that this practice should be stopped forthwith. He said all tax laws that are proving hindrance in the smooth growth of business activities including Sec-40B and 38A should also be revised in consultation with stakeholders as these laws have added to the woes of traders and industrialists.
Muzzamil Sabri was of the view that government’s increased reliance on withholding taxes could become counterproductive as it would further incentivize non-filers to conduct cash transactions and promote informal economy in the country.
He said the imposition of this tax would also give rise to inflation as non-filers would pass on its burden to the common man who will have to pay high prices on purchases. He said the whole business community of the country has rejected this new tax and government should pay attention to their demand for its urgent withdrawal.