After the failure of the Finance Ministry to convince business leaders Wednesday on the efficacy of imposition of 0.6 per cent withholding tax (WHT) on cash withdrawals, the government announced the formation of a 19-member committee to resolve the issue on Thursday (today).
The committee includes seven members each from trader bodies including FPCCI and various chambers of commerce and industries. The committee will also include Special Assistant to Prime Minister on Revenue Haroon Akhtar, FBR Chairman Tariq Bajwa, FPCCI President Mian Idrees and MNAs Pervez Malik and Mian Abdul Manan.
An informed source said the Finance Ministry tried hard to resist the business community, which remained adamant on accepting anything less than the complete withdrawal of the WHT. The source said that the ministry presented its limitation in withdrawing a taxation tool approved by the parliament, however, the traders’ representatives warned that if the tax was not withdrawn, then they would give a countrywide shutter-down strike call.
The source said that Haroon Akhtar was of the opinion that the issue could be settled amicably as it was a taxation matter and experts could find a way out.
Meanwhile, a statement issued by the Finance Ministry said that Ishaq Dar met with representatives of traders and business community, chambers of commerce and industries from all over the country on FBR-related issues including the imposition of 0.6 per cent withholding tax on banking transactions.
The minister at the outset clarified that 0.6 per cent withholding tax on banking transactions announced in the budget 2015-16, was applicable only on non-filers. It was in a way meant to persuade non-filers to enter the tax net and contribute to the national exchequer. He gave a patient hearing to all the representatives and had open discussion with them on resolving their FBR-related issues. The minister assured representatives of the business community of all possible consideration of their requests and directed the 19-committee to meet at the FBR on Thursday.
