The government and trade representatives failed on Monday to end the deadlock on the abolition of withholding tax (WHT) on cash withdrawal on banking instruments, prompting the main traders’ body to give a complete shutterdown strike across the country on August 1.
All Pakistan Anjuman-e-Tajiran (APAT) President Ajmal Baloch told Pakistan Today that the businessmen were disappointed with the failure of the talks. He also regretted that Finance Minister Ishaq Dar did not bother to meet with traders representative although he was constantly monitoring the day-long talks.
“The matter would have been resolved had the finance minister intervened today,” he added.
The seven and half hours long talks were held between the government team, including parliamentarians and tax officials, and traders’ representatives from across the country. The traders wanted complete abolition of 0.3 per cent WHT on cash withdrawals, which the government has already reduced from 0.6 per cent.
Sources told Pakistan Today that the government side was of the opinion that the WHT on cash withdrawals and banking instruments could not be abolished completely as it was introduce to bring non filers in the tax net. It will only affect the non tax payers, the government team insisted but the business community’s representative rejected the argument.
APAT Punjab President Chaudhry Mahboob Ali Sarki told Pakistan Today that the talks were attended by all the trade representatives across the country and they had unanimously rejected the government argument.
He said the government has again invited them for talks on Tuesday, which he said were useless because the government was not ready to accept their demand. He said the decision to hold the shutterdown strike on Aug 1 was final and will be implemented.
Official sources said the government was trying to hold another round of talks with the trade representatives, as majority of the ruling party parliamentarians from Punjab were pressing the government to resolve the issue to avoid a shutterdown strike.
