FPCCI: (FPCCI urged for immediate withdrawal of 0.6% WHT on banking transactions)July 6, 2015
ISLAMABAD: FPCCI President Mian Mohammad Adrees on Tuesday drew the attention of the Prime Minister Mian Nawaz Sharif and Finance Minister, Senator Ishaque Dar towards the agitations of business community all over Pakistan against 0.6% WHT on every banking transaction.
He further said that it is surprising that the banking sector has not yet been provided the list of non-filers to whom they have to charge 0.6%. He also said that FBR�s data in this regards is also not updated.
In a statement here, he said the banking sector is deducting 0.6% WHT from all customers; the bank officials just look at the amount of banking instrument and which they found above Rs. 50,000 they simply deduct 0.6% WHT irrespective of that the customer is tax-filer or non-filer.
He said that the FBR would have made arrangements with banks and share with them the updated data of filers and non-filers prior to impose such tax.
Such type of taxes are not advisable for low income economies like our country us where the per capita income is around $1300 which ultimately if converted in Pak Rupee will reveal that it is even lower the minimum salary scale of the government which is Rs.12,000 per month.
He pointed out that the volume of banking transaction of over about Rs. 6 trillion annually should not be linked to all non-filers which also include the transactions of tax-filers, widows, pensioners, lower cadre employees and other poorest people of the society.
In this scenario the banking deposits will also be reduced as the people will keep their deposit either in hard cash or in the shape of gold to avoid tax. He regretted that the tax payers all over the world always honoured but in Pakistan the tax payers are being victimized.
He emphasized the need of broadening the tax net which is the ultimate solution for enhancing tax revenue to exchequer rather the FBR is putting pressure on the existing tax payers who are already under burdened of heavy tax rates.
He urged the Prime Minister Mian Nawaz Sharif and Finance Minister Sanator Ishaq Dar to withdraw tax on banking transaction because it would hamper the business activities which will consequently reduce our exports.