ISLAMABAD
Talks between government and business community reached a deadlock on Wednesday after Finance Minister Ishaq Dar refused to accept both demands of abolishing 0.6% tax on banking transactions and suspending levy, it has been learnt.
The industry and trade representatives met with government officials in an effort to convince them to withdraw taxes, which had been levied on all transactions valuring more than Rs50,000 conducted by non-filers of tax returns with effect from July 1.
The transaction tax is discouraged all over the world as it does not capture the real income, resulting in an increase in the cost of doing business.
Dar stuck to his statement despite pressure from within the ruling party that had a strong base among traders and industrialists.
Shahbaz Sharif was also unhappy about the tax law, reportedly.
Dar turned down the demand of suspending taxes for one month as a pre-condition for further negotiations.
