ISLAMABAD: The government has succeeded in broadening tax net through imposing 0.3 per cent withholding tax on banking transactions as about 36,000 new income tax returns have been filed from July to September 15.
According to Shahid Hussain Asad, Senior Member Policy Inland Revenue and official spokesperson for Federal Board of Revenue (FBR), about 36,000 people have tax returns since imposition of the withholding tax on banking transactions and number of tax filers would increase in future.
After the imposition of withholding tax, Rs4 billion revenue was generating during July and August of current fiscal year 2015-16. The government had projected to generate Rs35 billion from the withholding tax on banking transactions during entire current fiscal year.
However, business community has refused to accept the withholding tax and calling for protests till the cancellation of tax on banking transactions. Withholding tax would be restored to 0.6 percent from October 2015 from existing 0.3 percent as per agreement with the traders’ bodies.
