Submitting partially to the business community’s demand, the Finance Ministry has decided to reduce the Withholding Tax (WHT) on bank transactions for non-filers from 0.6 per cent to 0.3 percent till September 30, 2015.
The decision was taken during the successful dialogue between the government and trader representatives on Thursday. WHT was announced in the Budget 2015-16 on banking transactions for the non-filers.
Later talking to media, Finance Minister Ishaq Dar said the reduction in WHT will be applicable till September 30 this year.
He said the traders had agreed to file tax returns on priority basis by September 30. He said after that time 0.6 per cent WHT would be applicable on the bank transactions for the non-filers.
Dar said that the WHT was part of the Finance Bill and had a legal and constitutional binding. For any relaxation in it, the matter has to be taken to the parliament. He said an ordinance would first be issued regarding WHT and then it would be taken up by the parliament.
Dar also stated that extension of Schedule-III would be considered on sector to sector basis for sales tax between business representatives and Federal Board of Revenue. It was also decided that turn over tax would be decided (according to various trades and sectors) with consultations between representatives of business community and FBR. The minister further said that the 19-member committee shall work on these issues and hopefully finalise its recommendations by the end of August.
All the representatives of business community present on the occasion thanked the finance minister for his interest and support to resolve the issue regarding withholding tax on banking transactions and other FBR-related matters.
