Taxing banking

The government has levied a revised withholding tax on all transactions through banks. Its rate is different for tax return-filers and non-filers. This revised WHT is applicable on cash withdrawals of Rs50,000 or above @ 0.6 percent for non-filers and 0.3 percent for filers of tax returns. These deductions are effective from July 1.
It seems our finance minister is forcing people to shun banking altogether and keep their cash at home. This is very disappointing and discouraging. This tax will also encourage hawala and hundi. It is also a fact that the FBR has failed to compile accurate data of tax returns filers. Thus it will be difficult for banks to deduct WHT accordingly. Even genuine taxpayers will end up paying this extra amount. The government should rethink this tax.
Dr Alfred Charles
Karachi