ISLAMABAD: The government and traders considered three options during their negotiations to resolve the issue of withholding tax.
According to details, at least 12 rounds of talks are concluded between government and traders to resolve the matter and now three options given by traders are under consideration.
The Finance Ministry sources told Customs Today that the first option is that non-filers will show their business capital if 0.2 percent withholding tax is imposed on them and the government will not asked about their sources of income. However, they will submit tax returns for five years and they will pay 25 percent extra tax every year and they will be exempted from audit for three years. Second option is that the government should impose turnover tax instead of withholding tax on traders. The rate of turnover tax must be specific and turnover tax should be imposed on those turnovers which are shown by the traders.
Moreover, the third option is the government should categorize the traders and then fix tax according to their categories. Sources added that traders also demanded the FBR that one page income tax return form should be issued for non-filers in Urdu.
