ISLAMABAD: Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister President Mian Zahid Hussain has said that the impasse between the government and business community over imposition of withholding tax on bank transaction can become a major problem in the country.
While talking to representatives of traders, he said that the issues of bank tax must be resolved as it continues to hit banking industry while promoting parallel banking system which is adding to black economy.
He said that many in the business community have printed receipt book matching cheque book which are being used for transactions which will flourish parallel banking.
Moreover, Mian Zahid Hussain said that businessmen are preferring business through lockers and increasing using dollars which is not good for economy.
According to SBP, deposits have been reduced by 5.2 percent in July while another report says that deposits have been hit by 38 percent since June while currency under circulation has increased by 158 percent.
