ISLAMABAD - On the advice of Prime Minister Nawaz Sharif, President Mamnoon Hussain has issued an ordinance for adjustment in withholding tax slashing it down to 0.3 per cent from 0.6 per cent on cash transactions through banks and matters relating to Federal Board of Revenue.

The prime minister following his meeting with Finance Minister Ishaq Dar here on Saturday had sent the advice to the President to issue an ordinance and a couple of hours later the same was issued which would be enforced at once.

In the meeting with the prime minister, Dar briefed him about his successful negotiations with traders’ leaders and their agreement on slashing down of withholding tax on cash transactions through banks from 0.6 per cent to 0.3 per cent.

The PM was so concerned about the matter that on hearing the news of traders’ annoyance over the issue he rang Ishaq Dar from Oslo and directed him that all the genuine concerns of the traders community would be taken care of and following his advice the finance minister held talks with traders’ leaders and resolved the issue through.

However, some traders’ bodies in Karachi were still not satisfied with the decision and threatened to protest against what they termed the cruel and anti-business community decision of slapping withholding tax on bank transactions.

The finance minister also briefed Nawaz about his visit to China, signing of AIIB Articles of Agreement and meetings with heads of financial institutions including Exim Bank.