LAHORE - President of the Lahore Chamber of Commerce & Industry Malik Tahir Javaid has urged the National Assembly not to pass federal budget 2018-19 until and unless necessary amendments and rectifications are made. “Major obstacles for business community like withholding tax on banking transactions should not be the part of federal budget 2018-19 otherwise these would eat up the outcomes of good initiatives,” he said.

The LCCI president said that withholding tax on banking transactions is “extortion” as it is being collected forcefully without keeping in view the agonies of the business community. He said that budget is to be presented in the National Assembly for debate and approval. It is a premier chance for the members of National Assembly to remove the menace of withholding tax on banking transactions and win the hearts of the business community.

He said that imposition of withholding tax on banking transactions was an illogical step more than a dual taxation as business community is already paying income tax, sales tax and various other duties and taxes imposed by the federal and provincial governments. He said that withholding tax on banking transactions is doing more harm than good and continuously affecting the business atmosphere in the country.

“Issue of withholding tax is top of the list in the other miseries like disparity in taxation system, dual taxation, high input cost and delay in refunds that must be resolved according to the demand of the business community,” the LCCI office-bearers said while talking to a delegation of All Pakistan Anjuman-e-Tajran, led by Khalid Pervez.

He said that business community has rejected withholding tax on banking transactions from the first day but concerned authorities are not ready to realize the ground realities.

Malik Tahir Javaid said that though expansion of tax net is need of the hour but government would have to find out new ways to bring the untaxed sectors into the tax net. He said that measures like imposition of withholding tax on bank transactions are not doing any service to the economy as it has been observed that tax collection machinery has no authentic data to specify difference between filers and non-filers.

The LCCI president said that tax on all bank transactions has been imposed forcefully, that is not only hampering the trade and economic activities but is also tarnishing the soft image of the government. He said that a number of trade & industrial associations have approached to the LCCI and informed that imposition of tax on all banking transactions has caused unrest and put the interests of business community on stake.

LCCI senior vice president Khawaja Khawar Rashid and vice president Zeshan Khalil said that imposition of this tax has forced business community to conduct its monetary transactions in cash that is promoting undocumented economy. The LCCI office-bearers hoped that withholding tax on banking transactions will be withdrawn immediately in the larger interest of the industry, trade and economy.