ISLAMABAD/LAHORE
As the traders are all set to observe countrywide strike on Saturday against withholding tax on banking transactions, the government on Tuesday constituted three committees to address the issues of the business community including controversial WHT.
“We have formed committees on income tax, on sales tax and on communication”, said Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan while talking to media after holding meeting with traders. A large number of traders boycotted the meeting. The traders the other day announced to observe countrywide strike on August 1 against the WHT on banking transactions. They also announced to boycott the meetings called by the government. However, the government held meeting with some of the traders on Tuesday and decided to constitute three different committees to address the issues of the business community.
The trade bodies, which boycotted the second round of talks with government on Tuesday, alleged the authorities are not serious to listen to the reservations of business community.
Addressing a press conference at Lahore Press Club, the trade bodies, under the banner of All Pakistan Anjuman-i-Tajiran, announced to observe shutter down strike against imposition of 0.3 per cent withholding tax (WHT) on banking transactions by the federal government.
APAT central general secretary Naeem Mir, accompanied by Pakistan Anjuman-i-Tajiran president Muhammad Ashraf Bhatti (Bhatti group), Qaumi Tajir Ittehad central president Sheikh Mushtaq Ahmed, APAT Punjab president Ch Mehboon Sirki, LCCI Azad Group chairman Raja Hassan Akhtar, Lahore Traders Alliance president Safdar Ali Butt, APBF Lahore president Ch Amjad, observed that as per the commitment, all trade bodies attended the meeting with the government but the government officials did not seem to be serious to resolve the issue. He said that even Finance Minister Ishaq Dar did not attend the meeting while rest of the government team did no show any flexibility in its stance.
Naeem Mir said that traders are not against widening of tax net but government should collect tax after consultation with the stakeholders, saying they cannot afford to pay direct tax to the govt.
All Pakistan Anjuman-i-Tajiran central general secretary said that traders attended the meeting but our demands are not accepted and now after the deadlock the traders will come to the streets and strong protests will be observed all over the country, as it is the decision of all traders from across the country.
Haroon Akhtar informed the media that government has asked the committee to finalize their reports by 14th August. “The government will take final decision on the basis of the committees’ reports”, he said and added, “It was the fourth meeting with the representatives of business community, which was held in a cordial manner and attended by the representatives of different trade bodies and chambers of commerce”.
Talking about the controversial WHT, the Special Assistant to Prime Minister on Revenue said that government has imposed it on the non-filers in order to bring them into the tax net. Naeem Mir claimed that traders are united and Khalid Pervaiz group has also been invited to join hands with trade community of whole Pakistan for shutter down strike on first Aug in the interest of traders community.
He said that All Pakistan Transporters Association has also announced to support the traders shutter down strike on first of Aug, as the whole business community, including manufacturers, transporters and general public are disturbed with this draconian law of WHT on banking transaction.
Naeem Mir said that APAT stands with all trade associations against this imposition of tax on bank transactions. He said that if tax on all bank transactions was imposed forcefully, it would not only hamper trade and economic activities but would also tarnish the image of the government. He informed that imposition of tax on all banking transactions had caused unrest and put the interests of the business community at stake.
He said that imposition of this tax has forced the business community to make its monetary transactions in cash, which would promote undocumented economy. He demanded that all business-related decisions should be taken in consultation with the stakeholders, as being done in the developed countries. Traders do advocate the broadening of tax net but all measures should be taken in consultation with the stakeholders.
The communication committee comprises of Mian Abdul Mannan MNA (convener), Nadeem Dar, Member (FATE), FBR, Zubair Tufail (FPCCI), Anjum Mahmood Butt (Pakistan Muslim Traders Wing), Syed Asad Mashhadi, Muzammal Hussain Sabri, Amir Waheed, Sheikh Babar Khurana, Fuad Ishaq and Muhammad Ali Mian.
Income tax committee comprises of Malik Pervez MNA (convener), Shahid Hussain Asad Senior Member (Inland Revenue Policy), FBR, Sheikh Muhammad Asif, Muhammad Ali Mian, Zubair Tufail, Anjum Mahmood Butt, Muzammal Hussain Sabri, Malik Sohail Hussain, Khawaja Zarrar Kaleem, Khawaja Tanveer Ashraf, Asim Zulfiqar and Kashif Shabbir.
The sales tax committee consists of Rana Muhammad Afzal Khan MNA, Parliamentary Secretary Finance (convener), Muhammad Ashraf Khan Member (Inland Revenue Operations), FBR, Ashfaq Tola TRC/TAC, Asif Haroon FCA, Kashif Anwar, S Khalid Tawab, Syed Asad Mashhadi and Engineer Rizwan.
The above three committees will have the powers to cooperate with each other’s members if considered necessary. Income Tax and Sales Tax Committees shall submit their reports by 13th of August. The first meeting of these committees will be held on Friday 31st of July, 2015 at FBR (HQs).