ISLAMABAD: The on-going negotiations between government and businessmen on the issue of withholding tax are heading towards agreement.
Sources told Customs Today that traders are quite optimistic that the government will change its stance on sales tax. Now sales tax will be applied on traders whose electricity bill is up to Rs 50,000 per month. The government has also agreed to bring the withholding tax percentage on banking transactions at 0.2 percent. Now withholding tax will be applied on transaction of Rs 100,000 instead of Rs 50,000.
Talking to Customs Today president All Pakistan Anjuman-e-Tajran Ajmal Baloch said, “We want to see the Federal Board of Revenue policies as traders friendly.” He said that committees which were being formed on regional basis will now work permanently and will forward their proposals for tax reforms to Federal Board of Revenue. Government will consider proposals of these committees in upcoming budget.
Ajmal Baloch said that all the salient features of this agreement will be announced by Federal Finance Minister Ishaq Dar in his press conference which is going to be held on November 15, 2015.
