LAHORE: Traders and industrialists at large have severely lamented the imposition of 0.6 percent withholding tax on all banking transactions for non-filers.
Talking to Customs Today, they said that 0.6% income tax on non-filers of tax returns on their banking sector transaction would be an amnesty for them, as they would continue to be non-filers and be contented with paying a small slab of tax on their banking transactions; hence remaining tax evaders.
They added that banking deposits will also be reduced, as the people will keep their deposits in the form of gold or invest in real estate to avoid tax.
PIAF Chairman Irfan Iqbal Sheikh said that the existing tax filers will be discouraged, who are the real taxpayers, and face several problems in updating their records and making payments to tax consultants.
Anjuman-Tajran Pakistan President Khalid Pervaiz threatened to resort to a shutter-down strike for deduction of 0.6% tax on all banking instruments. The banks will deduct the charges on every transaction without verifying or identifying the tax filer or non-filer. Consequently, another chapter of adjustments or refunds will be opened for the FBR and the existing tax filers as well, he added.
All Pakistan Anjuman-e-Tajran General Secretary Naeem Mir showed his deep concerns over the existing tax net of the FBR, and said that the FBR was concentrating only on the existing taxpayers rather than enhancing or broadening the tax net. He further said that the volume of banking transaction of more than Rs 6 trillion annually should not be linked to all non-filers.
The traders suggested that the government should give three to six months to all non-filer of tax to become tax filers. He further said that the business community across the country would have no choice except to protest against this rule.
