MULTAN: The All Pakistan Anjuman –e-Tajiran Multan has rejected imposition of withholding tax on bank transactions of over Rs. 50,000.
While addressing a press conference in Multan Press Club, All Pakistan Anjuman-e-Tajiran President Khawaja Salman Siddiqui described the imposition of withholding tax on transactions of over Rs. 50,000 as unfair and urged the government to withdraw it as it would hike up inflation by increasing the operational costs of business communities and the small industry, who are already facing great obstacles.
The All Pakistan Anjuman-e-Tajiran has criticized the government on the imposition of withholding tax on transactions over Rs 50,000 and urged the government to withdraw this immediately.
He termed the newly imposed withholding taxes unnecessary burden on the small traders that would damage already weak business community and it affects the on-going trade activity in the country.
Khawaja Suleman Siddiqui said the government have not done nothing for expanding of the country tax net, Instead it has imposed such indirect taxation, which is certainly not sensible for low-income markets like ours, where the common citizens are financially overburdened.
He told that imposition of such indirect taxes in Pakistan will severely discourage financial activities through banks and regulated institutions. Due to these new withholding taxes common man will be motivated towards avoiding this tax, by using the unregulated and illegal financial channels and it would surely result in big revenue losses for the government.
He suggested that for the creation of healthier revenue streams for the government, Federal Board of Revenue must formulate more direct taxation instead of indirect taxation by specifically focusing big tax evaders, well-off segments and high-profitable enterprises with annual incomes exceeding Rs 50 million. The government should also consider reducing the General Sale Tax on electricity to encourage small industries and businesses.
Khawaja Suleman demanded of the federal government to refrain from imposing this withholding tax and work towards providing relief to the industry and ultimately to the common man. He described that according to the government statistics that only 791,000 out of 20 million individuals filed their tax returns in economic year 2014_15.
He warned that if the government failed to withdraw the withholding taxes on the bank transaction of over Rs 50,000 then business community will take extreme steps including closure of business by staging protest.
He appealed from the Chairman Federal Board of Revenue that he should review his decision for the promotion of business environment in the country. He also warned government if they failed to accomplish their demands then the business community will launch the countrywide moment against the taxes after Eid ul Fitr.
