LAHORE: The local business community has asked the government to direct banks not to deduct 0.3 per cent withholding tax on transactions from the filers.
Progressive Group in the Lahore Chamber of Commerce and Industry (LCCI) has urged the Finance Ministry and the Federal Board of Revenue (FBR) to take notice of the Banks deducting withholding tax from even the filers despite clear instructions issued by the government and the FBR many a times.
Progressive Group’s President Khalid Usman and Deputy Secretary Muhammad Ejaz Tanveer, in a statement, said that they were receiving complaints from different traders that the banks were even deducting the withholding tax from the filers. Especially those traders and businessmen are becoming subject to this injustice those have NTN number in their name but not against their company but are regular in filing their income tax return mentioning all their income.
They said that the banks were advising such persons on protest that they should apply for refunds at the end of the financial year. However, everybody in Pakistan know the fact that its almost next to impossible to get refunds from the FBR. Stuck up refunds also create liquidity problem for the businessmen especially small businessmen.
Progressive Group leaders said that nobody was against paying the taxes but the FBR instead of relying on indirect taxes should broaden the tax net. Constitution of committees by the Federal Board of Revenue (FBR) in the name of facilitating the traders will not work. “
