A complete shutter down strike will be observed on Tuesday (today) by yarn market and all business and trade centers and commercial malls in Faisalabad in protest against the imposition of 0.6 percent withholding tax on bank transactions, said Pakistan Yarn Merchants Association (PYMA)’s Central Chairman Qaisar Shamas Guccha, Zonal Chairman Muhammad Akram Pasha and Zonal Vice Chairman Adnan Zahid Butt while briefing the reporters on Monday.
Levy of withholding tax on bank transactions would prove counter-productive as the non filers would resort to cash business and black money market will grow, the yarn merchants representatives said.
Furthermore the business turnover and volume of trade will be restricted, negatively impacting the economic activity and national economy, they stated. They also pointed out that the industrial sector will also suffer as the suppliers would demand cash payments their by defeating the documentation objective.
They said the government had already levied myriad of taxes and enhancing the rate of withholding tax would break the back of business and trade. They pointed out that with increase in cash transactions the sales tax revenue would also be negatively affected as the business transaction would not be recorded and people will find it convenient to evade sales tax as well as income tax.