KP business community wants tax on transactions withdrawn

PESHAWAR: The business community has asked the government to take back withholding tax on transactions of over Rs 50,000.
The demand was made by Khyber Pakhunkhwa Chamber of Commerce and Industry President Fuad Ishaq at a meeting of various industries, millers, and traders association here. The business community members said the deduction of 0.6 per cent withholding tax (WHT) on transaction of over Rs50,000 through commercial banks would be disastrous for economy.
They complained that instead of taking measures for broadening the existing tax net, the government was putting taxpayers and non-tax payers in similar categories, which was a disappointing move.
The participants of the meeting rejected the imposition of 0.6 per cent withholding tax on transactions of over Rs 50,000 through cross cheques, pay-orders, and demand drafts in the commercial banks.
They demanded the Federal Minister for Finance, Ishaq Dar, and Federal Board of Revenue to withdraw the decision forthwith. The members of business community warned of a strong protest if the levy was not taken back.
Fuad Ishaq said the business community took a sigh of relief, following announcement of incentive package for terrorism affected businesses and industries of KP by the 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 was a step to take back the relief from business community. The KPCCI chief said some elements were trying to create rift between federal government and business community. He called for foiling such efforts.