ISLAMABAD: Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan has barred the Federal Board of Revenue (FBR) from collecting 6 per cent withholding tax (WHT) on the turnover of flour mills in the federal capital.
The special assistant made the announcement in a meeting with Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam, who was leading a delegation of the All Pakistan Flour Mills Association, including Chairman Asim Raza and Islamabad Chamber of Commerce and Industry former president Tariq Saud. Inland Revenue Member Rehmatullah Wazir, Member Customs Nasir Masroor, Member Operations Dr Muhammad Irshad and other officials attended also the meeting.
Haroon directed FBR officials to stop serving notices on flour millers and collect tax according to the practice prevailing for the last four years as the tax on turnover would push up prices of the staple. He also asked owners of grinders to improve their documentation process in order to avoid tax problems in the future.
Earlier, FPCCI President Abdul Rauf Alam and the flour millers told Khan that the tax was deducted from the fee earned by commission agents whereas there was no tax in case of wheat purchase from planters.
