ICCI: (ICCI urges govt to withdraw 0.6 % advance tax on banking transactions)

July 6, 2015 Off By Web Desk

ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to immediately withdraw 0.6 percent advance tax on banking transactions of Rs.50,000 and above for non-filers as it has created lot of problems for businessmen and would badly affect the business activities in the country.

ICCI president Muzzamil Hussain Sabri, said that government should have taken business leaders of the country in consultation before imposition of this new tax as it has created disturbance in the business community of the whole country.

He said government should also withdraw enhancement of sales tax from 2 percent to 3 percent on registered exporters and 5 percent on non-registered exporters and grant zero-rated facility to exported-oriented products.

He said FBR�s Intelligence Department has started raids on shops which has created harassment in the business community and stressed that this practice should be stopped forthwith.

He said all tax laws that are proving hindrance in the smooth growth of business activities including Sec-40B and 38A should also be revised in consultation with stakeholders as these laws have added to the woes of traders and industrialists.

He was of the view that government�s increased reliance on withholding taxes could become counterproductive as it would further incentivize non-filers to conduct cash transactions and promote informal economy in the country.

He said the imposition of this tax would also give rise to inflation as non-filers would pass on its burden to the common man who will have to pay high prices on purchases.

He said the whole business community of the country has rejected this new tax and government should pay attention to their demand for its urgent withdrawal.