ISLAMABAD: The business community of the federal capital has asked the government to immediately withdraw the 0.6% withholding tax on all banking transactions imposed on non-filers.
Islamabad Chamber of Commerce and Industry (ICCI) President Muzzamil Hussain Sabri has said that the tax will discourage banking transactions and instead, promote non-banking and cash transactions, which will have harmful consequences for the economy.
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The government has imposed advance adjustable income tax at a rate of 0.6% on all banking transactions of over Rs50,000 in a day for non-filers in a bid to compel them to become tax return filers.
The ICCI president said the decision will lead to many complications and it will cause a drop in bank deposits, promote the culture of cash transactions, affect profit margins of taxpaying businessmen and enhance turnover tax for filers.
