KARACHI - The government is considering a 1 percent reduction in withholding tax while there will be no audit of zero-rated industries, The Nation learnt on Saturday. Sources said that 1 percent reduction in withholding tax is being seriously considered to facilitate the business community that has already been in feeble condition. They elaborated that if any export company is in loss it can file for a refund. Moreover, refund claims will be settled within 90 days and in case if they are not settled within 90 days the contentions of the claimant will be accepted, they added. The sources said that there would be no audit of the zero-rated industries, however, if the need arise it would not be done before 1 years time. They disclosed that on Friday (June 19), Shaukat Tarin had a meeting with representatives of the Karachi Chambers of Commerce and Industry (KCCI) along with presidents of other chambers across the country that lasted for an hour in which 90 percent of the business community demands were accepted. KCCI President Anjum Nisar while talking to The Nation said that the advisor has agreed to visit KCCI shortly after the approval of budget from the parliament, in which the remaining issues like Afghan Transit-Trade would be discussed. He said that the advisor, on their recommendations had decided to withdraw all the irritant and harsh clauses proposed in the final draft of the finance bill for 2009-10. The advisor to the Prime Minister on finance has also agreed to withdraw the additional withholding tax on imports, saying that the businessmen will pay as per the previous rate of two per cent on import, he added. Shaukat Tarin has also agreed to reverse the decision regarding the establishment of a Directorate of Income Tax Intelligence and assured the businessmen that the finance bill will be amended.