ISLAMABAD: The Economic Coordination Committee of the cabinet (ECC) meeting, presided over by Finance Minister Ishaq Dar, has approved to extend the period of applicability of 0.3% withholding tax on banking transactions till January 31, 2016.
The proposal was submitted by the Federal Board of Revenue in this regard to the ECC. The committee was informed that the reduced rate of 0.3% had been introduced by the government to allow FBR to hold negotiations with the trading community and resolve the issue confronted by them, so as to encourage them to become part of the formal economy.
The negotiations with the traders’ representatives were now in the final stages and therefore the reduced rate of 0.3% may be allowed to continue for another month.
